NEWARK – A Plainfield, New Jersey, tax preparer was sentenced today to 30 months in prison for conspiring to defraud the IRS, falsifying his tax returns, and witness tampering, U.S. Attorney Craig Carpenito announced.

Samuel Davis Jr., 54, previously pleaded guilty before U.S. District Court Judge Susan D. Wigenton to a three-count information charging him with conspiring to defraud the IRS, filing false personal tax returns, and witness tampering. Judge Wigenton imposed the sentence today in Newark federal court.

According to documents filed in this case and statements made in court:

Davis was an active detective sergeant in the N.J. State Police while also owning and operating a tax preparation business, Get Organized Tax & Accounting (GOTA). He retired from the state police in 2016 after 28 years. For tax years 2011 to 2016, Davis and his conspirator, Kyna Felder-Ruiz, prepared false individual income tax returns for various GOTA clients. They used a number of fraudulent practices, including falsely claiming deductions, fabricating educational credits, and submitting fake receipts, in order to obtain refunds for their clients in amounts substantially greater than those to which the taxpayers were entitled.

For tax years 2012 through 2014, Davis also filed false personal income tax returns by underreporting business income that he derived from GOTA, defrauding the IRS of tens of thousands of dollars in taxes.

In October 2018, Davis discovered that his son had received a subpoena to appear and testify before a grand jury, and he attempted to persuade his son to provide false testimony.

In addition to the prison term, Judge Wigenton sentenced Davis to three years of supervised release, fined him $10,000 and ordered restitution of $71,558 to the IRS. Felder-Ruiz previously pleaded guilty and is scheduled to be sentenced Oct. 31, 2019, for her role in the scheme.

U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Ryan L. O’Neill of the U.S. Attorney’s Office’s Organized Crime and Drug Enforcement Task Force Unit.

Anyone who believes they may have been a victim of this defendant can contact IRS-Criminal Investigation at (732) 761-6439.

Defense counsel; Thomas R. Ashley Esq., Newark

NEWARK – Two Union County, New Jersey, tax preparers today admitted their respective roles in conspiring to defraud the IRS, filing false personal tax returns, and witness tampering, U.S. Attorney Craig Carpenito announced.

Samuel Davis Jr., 52, of Plainfield, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to one count of conspiring to defraud the IRS by aiding and abetting the filing of false tax returns, one count of filing false personal tax returns, and one count of witness tampering. Kyna Felder-Ruiz, 35, also of Plainfield, pleaded guilty to one count of conspiring to defraud the IRS by aiding and abetting the filing of false tax returns.

According to documents filed in this case and statements made in court:

Davis was the owner and operator of Get Organized Tax & Accounting (GOTA), a tax preparation business in Plainfield. Davis retired as a detective sergeant from the N.J. State Police in 2016 after 28 years. Felder-Ruiz, who was employed by the N.J. State Police as a public safety dispatcher for approximately two years, was employed as a tax preparer at GOTA. For tax years 2011 to 2016, Davis and Felder-Ruiz prepared false individual income tax returns for various GOTA clients. They used a number of fraudulent practices, including falsely claiming deductions and fabricating educational credits in order to obtain refunds for their clients in amounts substantially greater than those to which the taxpayers were entitled.

For tax years 2012 through 2014, Davis filed false personal income tax returns by underreporting business income that he derived from GOTA. By doing so, Davis defrauded the IRS of tens of thousands of dollars in taxes. He also admitted that in October 2018 he became aware that his son had received a subpoena to appear before a grand jury. Davis admitted attempting to persuade his son to provide false testimony to the grand jury.

The tax fraud conspiracy charge to which Davis and Felder-Ruiz pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. The witness tampering charge to which Davis pleaded guilty carries a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing both defendants is scheduled for June 11, 2019.

U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty pleas.

The government is represented by Assistant U.S. Attorney Ryan L. O’Neill of the U.S. Attorney’s Office’s Public Protection Unit.

Defense counsel:

Davis: Thomas Ashley Esq., Newark

Felder-Ruiz: Anthony Iacullo Esq., Nutley, New Jersey

NEWARK – Two Union County, New Jersey, tax preparers were arrested today on charges of filing scores of fraudulent tax returns, U.S. Attorney Craig Carpenito announced.

Samuel Davis Jr., 52, and Kyna Felder-Ruiz, 35, both of Plainfield, New Jersey, were indicted by a federal grand jury on April 11, 2018. Davis is charged with conspiring to aid and abet the filing of more than 70 false tax returns, seven counts of aiding and abetting in the filing of false tax returns, and three counts of filing his own false tax returns. Felder-Ruiz is charged with conspiring to aid and abet the filing of more than 70 false tax returns and four counts of aiding and abetting in the filing of false tax returns. They are scheduled to appear today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.

According to the indictment:

Davis is the owner and operator of Get Organized Tax & Accounting (GOTA), a tax preparation business in Plainfield. He retired as a detective sergeant from the N.J. State Police in 2016 after 28 years. Felder-Ruiz, who worked for the N.J. State Police as a public safety dispatcher for approximately two years and is currently a firefighter for the City of Plainfield, New Jersey, works as a tax preparer at GOTA. For the tax years 2011 to 2016, Davis and Felder-Ruiz prepared false individual income tax returns for various clients. They used a number of fraudulent practices, including falsely claiming deductions and fabricating educational credits in order to obtain refunds for their clients in amounts greater than those to which they were entitled.

For the tax years 2012 through 2014, Davis filed false individual income tax returns by falsely reporting the gross business income to GOTA. By doing so, Davis defrauded the IRS of tens of thousands of dollars in taxes.

The false filing charges with which Davis and Felder-Ruiz are charged each carry a maximum potential penalty of three years in prison and a $100,000 fine or twice the gross pecuniary gain or loss from the fraud. The maximum penalty for the conspiracy offense is five years in prison and a fine of $250,000, or twice the gross loss or gain caused by the offense.

U.S. Attorney Carpenito credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen with the investigation leading to the indictment.

The government is represented by Assistant U.S. Attorney Shana W. Chen of the Criminal Division in Newark.

The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.

Defense Counsel:

Davis: Thomas Ashley Esq., Newark

Felder-Ruiz: TBD