Freeport Woman Pleads Guilty To $12M Tax Fraud Scheme: Feds

CENTRAL ISLIP, NY. — U.S. Attorneys from the Eastern District of New York announced Wednesday that a Freeport woman had pleaded guilty to two counts of wire fraud and a charge of aiding and assisting in the preparation of false tax returns.

Prosecutors said 58-year-old Damaris Beltre had fraudulently claimed tens of millions of dollars in tax credits while preparing tax returns for clients at her tax preparation business between January of 2021 and April of 2024. Those credits, prosecutors said, were related to COVID-19 and motor fuel income, both of which Beltre entered to reduce her clients’ tax liability and secure them a higher tax return. Prosecutors said Beltre was paid over $1 million for her services during this time, and received a percentage of any tax refund her clients received as part of the payment.

“Beltre brazenly defrauded the government and callously put her clients in jeopardy to line her own pockets,” United States Attorney Joseph Nocella Jr. said. “Today’s guilty plea should serve as a warning to anyone who, like this defendant, views federal programs and the federal treasury as their own personal piggybanks, that you will be arrested and vigorously prosecuted.”

Last March, Beltre was charged with wire fraud, money laundering and aggravated identity theft in a 42-count indictment.

Prosecutors said that a federal agent working undercover had hired Beltre in April 2023 to prepare his income tax return, a return that would have seen him owe the IRS $205 if prepared correctly. Instead, prosecutors said, Beltre prepared a tax return for the man that contained false, fraudulent statements and “baseless tax credits,” claiming a refund of over $14,243. For her services, Beltre charged the man $2,200, prosecutors said.

“Beltre was a shady tax preparer with a complete disregard for U.S. law or the American public she failed when she fraudulently claimed tens of millions of dollars in COVID- 19-related tax credits,” IRS-CO New York Special Agent Harry T. Chavis, Jr., said. “She hoarded funds meant for those with a legitimate need just to fatten her own pockets. With today’s plea, she can move forward with facing the full consequences of her actions.”

Prosecutors said the scheme led to over $11 million in tax refunds being doled out to Beltre’s clients under false pretenses, and millions of dollars more failing to find their way to the IRS due to the fraudulent liabilities.

Prosecutors said Beltre also engaged in a Paycheck Protection Program (PPP) fraud scheme from April of 2020 to July of 2022, wherein she filed false payroll records and income tax returns with the IRS. Those false reports, prosecutors said, led to about $1 million in PPP loans being given to Beltre’s clients, with Beltre using the money from both schemes to pay personal debts, finance a home in the Caribbean and make personal purchases, including a Honda CR-V and jewelry.

Beltre faces a maximum sentence of 53 years jail time, as well as a roughly $12 million restitution payment, prosecutors said.