SAN ANTONIO — A San Antonio man was sentenced today to five years in house arrest and ordered to pay $273,372 in restitution for preparing false tax returns.
According to court documents, Richard Medina Sr., 68, operated an unnamed, unregistered tax preparation business from his residency from 2013 to 2016. Medina prepared false federal tax returns for his clients claiming fake credits, Individual Retirement Accounts (IRAs), and itemized deductions. Medina fraudulently maximized tax credits to generate improper tax refunds, resulting in a loss of over $273,000. Medina was also required to notify the bankruptcy trustee of all forms of income after filing for bankruptcy in 2013, but lied under oath about income from his tax preparation business.
On June 23, 2020, Medina pleaded guilty to one count of aiding and abetting the preparation of a false tax return and one count of misrepresenting bankruptcy.
“Unscrupulous tax preparers such as Medina cause millions and millions of dollars of harm to both the US Treasury and their taxpaying clients, who are ultimately responsible for the accuracy of their returns,” said US Attorney Ashley C. Hoff. “Medina’s use of false information extended both to his own personal statements and to his omission of his income from deposits he made when he filed for bankruptcy protection.”
The Internal Revenue Service – Criminal Investigation (IRS-CI) investigated the case.
Assistant U.S. Attorney William R. Harris prosecuted the case.