Essex County Tax Preparer Used Dead Woman's Name to Make $400,000 in Fraudulent Tax Refunds

An Essex County tax preparer was sentenced to 57 months in prison today for receiving nearly $400,000 in fraudulent tax returns by using a dead woman’s identity.

Todd P. Halpern, 49, of Essex County filed the fraudulent claims by using the identity of the dead wife of the owner of A&V Financial, a tax return preparation business Halpern purchased in 2008, U.S. Attorney Paul J. Fishman stated. The deceased victim is identified in court documents as “V.R.”

When he purchased the Guttenberg, NJ. business, Halpern acquired the company’s computers and client records. As part of the agreement to purchase A & V, Halpern was to obtain a new Electronic Filing Identification Number (EFIN) in his own name.

Instead, Halpern continued to file tax returns using V.R.’s EFIN number because Halpern’s criminal record prevented him from obtaining an EFIN, according to case documents.

Halpern pled guilty today in Newark Federal Court to one court of filing false claims and one county of wire fraud. In addition to a prison term, Halpern will also have to serve five years in supervised release and pay $1.3 million in restitution.

At the plea hearing, the Judge Martini also entered a consent judgment and order of forfeiture for $373,938 and for a classic 1957 Chevy Bel Air, which constitutes the proceeds that Halpern obtained as a result of his frauds.

From 2009 through 2010, Halpern prepared and filed 657 fraudulent federal income tax returns with the IRS using V.R.’s EFIN. Halpern prepared and filed some of these fraudulent tax returns without the knowledge and authorization of the taxpayers identified on the returns, according to statements made in court. Some of these tax returns contained fraudulent income and deduction amounts, which generated fraudulent refunds that were directly deposited into Halpern’s bank account.

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

• On June 24, 2009, Halpern prepared and filed a fraudulent 2008 U.S. Individual Income Tax Return 1040 form with the IRS in the name of B.G., which fraudulently claimed an income tax refund in the amount of $13,183. The 2008 1040 form prepared by Halpern contained false income and deduction entries for B.G., because B.G. did not have any income for that tax year.
• On June 24, 2009, Halpern prepared and filed a fraudulent 2008 U.S. Individual Income Tax Return 1040 form with the IRS in the name of B.G., which fraudulently claimed an income tax refund in the amount of $13,183. The 2008 1040 form prepared by Halpern contained false income and deduction entries for B.G., because B.G. did not have any income for that tax year and did not file an income tax return. The $13,183 tax refund was directly deposited into Halpern’s bank account.
• Halpern received a total of $373,938 in fraudulent tax refunds. He used these funds to support his lavish lifestyle, including purchases at Prada, Chanel, Saks Fifth Avenue, and Bloomingdales, to acquire season tickets to the New York Giants, to purchase thousands of dollars in jewelry, gold coins, and silver certificates, to make car payments on multiple luxury vehicles, including a 2007 Cadillac Escalade and a 2008 Lexus GX-470, and to buy parts for his classic 1957 Chevy Bel Air.
• In November 2009, Halpern served as the buyer for the short sale of 215 Newark Ave., Bloomfield, New Jersey, from seller B.S. for a purchase price of approximately $185,000. In support of Halpern’s purchase of this property, an FHA-insured mortgage loan for Halpern in the amount of $181,649 was obtained from a New Jersey-based mortgage company.
• Halpern and others submitted numerous fraudulent documents to FHA and to the mortgage company, including false bank statements, pay stubs and 2008 federal income tax returns in Halpern and his wife’s names. As in his tax fraud scheme, the false tax returns that Halpern prepared reflectedV.R.’s identification number in an effort to conceal that Halpern had personally prepared the tax returns.

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