A Shelton man who ran a tax preparation business was sentenced to three years in federal prison Monday for filing phony tax returns for his clients — one of whom was an undercover IRS agent.
Bellarmin Namegabe, 47, pleaded guilty in December to a single count of preparing false tax returns before Senior U.S. District Judge Warren W. Eginton.
Federal prosecutors said in a prepared statement that returns prepared by Namegabe “falsely reported expenses, deductions and credits on numerous clients’ tax returns without his clients’ knowledge or consent.
“The false returns included fabricated Schedule As, Schedule Cs, number of dependents, fuel tax credits and other items,” the statement from prosecutors said.
During an investigation the feds interviewed 11 of Namegabe’s clients who said Namegabe had falsified their returns.
The IRS also ran an undercover operation during which an agent dropped off a W2 form and asked Namegabe to prepare a tax return.
The agent was only entitled to a refund of $632.
But when his return was posted to the IRS database, it generated a refund of $3,235.
In addition to the three-year prison term, Judge Eginton ordered Namegabe to pay back taxes, penalties, and interest totaling $240,196 related to the false tax returns he prepared.
The judge also ordered Namegabe to serve one year of probation once he’s released from prison.
This matter was investigated by the IRS’ Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
