LI Tax Preparer Indicted On Tax, Fraud Schemes: Feds

CENTRAL ISLIP, NY — A former tax preparer from Freeport has been charged in tax and COVID load fraud schemes that resulted in losses of $12 million, federal prosecutors said.

Damaris Beltre, 57, was charged on Wednesday in a 42-count indictment with wire fraud, aiding and assisting in the preparation of false tax returns, money laundering and aggravated identity theft, officials said.

Prosecutors claim Beltre prepared hundreds of false individual tax returns that caused a total of about $12 million in losses to the Internal Revenue Service and the Payroll Protection Program (PPP), which was designed to help small businesses during the COVID-19 pandemic.

"As alleged, the defendant’s fraudulent work as a tax preparer and in furtherance
of a COVID-19 loan scheme cost the government millions of dollars, all while she generated a
stream of illicit revenue for herself that she used to purchase, among other things, a home in the
Dominican Republic, a car and jewelry," stated United States Attorney John Durham.

Between about January 2021 and April 2024, Beltre engaged in a scheme in which she prepared and caused to be prepared false and fraudulent Forms 1040 and associated schedules and forms for client-taxpayers for submission to the IRS, Durham said.

Beltre engaged in a massive tax fraud scheme utilizing false dependents as well as tens of millions of dollars of COVID-19 sick leave credits and fuel tax credits that there was no basis to claim, officials said. Clients paid over $1 million for Beltre’s fees for her work preparing the false returns, which included a percentage of any refund issued, prosecutors said.

In a separate PPP fraud scheme, Beltre filed false payroll reports and tax returns with the IRS on behalf of companies to fraudulently obtain PPP loan proceeds totaling about $1 million, which she used to pay personal expenses, Durham said.

In May 2021, Beltre used about $16,000 in fraudulently obtained PPP funds to pay for the purchase of a Honda CRV, officials said. Between November 2021 and February 2022, Beltre and members of her family spent tens of thousands of dollars of fraudulently obtained PPP loan proceeds at jewelry stores, and Beltre withdrew about $226,160 of the fraudulently obtained PPP loan proceeds as cash from accounts for Botanica, L&D, Apollo, and various other accounts she controlled, prosecutors said.

"Beltre is charged with defrauding the government of millions of dollars to fatten
her pockets, using stolen identities, fraudulent tax submissions and bogus COVID-19 benefits
claims. While she may have been viewed as a respected tax preparer, Beltre did not respect
federal law, nor did she care about the victims of her fraud—the American people," said IRS Criminal Investigation Special Agent in Charge Harry Chavis.