NJ Attorney Scammed Clients Out Of $2M, Faked IRS Documents: Feds

JERSEY CITY, NJ – A Jersey City attorney was charged with scamming a family out of over 2 million dollars, as well as forging IRS documents purportedly requiring his clients to pay millions in taxes and penalties, federal officials said.

James R. Lisa, 67, who is charged by indictment with three counts of wire fraud and four counts of aggravated identity theft, was arraigned Thursday, pleaded not guilty and was released on $100,000 unsecured bond, U.S. Attorney Philip R. Sellinger said.

Lisa was initially retained by a family in 2014 to help retrieve millions of dollars in offshore bank accounts decades earlier, as well as to resolve tax issues related to the funds, according to case documents and statements made in court. Lisa helped the family retrieve over $6 million in funds in 2015, but continued to falsely advise the family that the funds should stay offshore. $4 million of the funds were eventually provided to the family, but Lisa remained adamant that the remaining $2 million were beyond his control.

In 2016, Lisa reportedly sent the family a fraudulent IRS “closing agreement” requiring the family to shell out $3 million in taxes and penalties for the repatriated funds, federal officials said. Another fraudulent closing agreement was sent in 2018, this time reflecting an agreement with the IRS for the family to pay $2 million in taxes and penalties because only $4 million was allegedly repatriated.

Each count of wire fraud carries a maximum penalty of 20 years in prison and a fine up to $250,000. Each count of aggravated identity theft carries a statutory mandatory penalty of two years in prison and a maximum fine of $250,000.

Sellinger thanked special agents from the Office of the Treasury Inspector General for Tax Administration (TIGTA), Mid Atlantic Field Division, under the direction of Special Agent in Charge Andrew McKay; and IRS - Criminal Investigation, Newark Field Office, under the direction of Acting Special Agent in Charge Tammy Tomlins, with the investigation.