Charlotte tax return preparers charged with conspiring to defraud the IRS

Seven Charlotte tax return preparers from a local financial firm have been charged with conspiring to defraud the IRS, the United States Department of Justice said Thursday.

A federal grand jury released a 20-count indictment charging Joseph Octave, owner and operator of Kapital Financial Services, and six of his employees for conspiring to defraud the United States, according to a release from the U.S. Attorney’s Office for the Western District of North Carolina.

The Kapital Financial Services employees listed are Vonyeda Carson, Wendia Courtois, Melissa Greene, Natisha Holloman, Kimberly Joline, and Whitney Vargas-Medrano.

Octave, Carson and Courtois are charged with aiding and assisting in falsifying tax returns for their clients, the release stated.

The indictment alleges Carson and Courtois falsified their personal tax returns.

The charging documents state that since 2014, all seven of the employees listed prepared and filed tax returns for clients which claimed “fabricated and fraudulent items.” These include income tax, education and American Opportunity credits, as well as Schedule A deductions and Schedule C business income and losses.

According to the release, Octave, Greene, Joline, and Vargas-Medrano trained Kapital Financial Services employees to falsify tax returns. Training materials included scripts and cheat sheets, the release stated.

If convicted on the conspiracy charge, defendants could face a maximum five-year prison sentence. For each count of aiding or assisting falsified tax returns, Octave, Carson and Courtois could face a three-year sentence.

Carson and Courtois could also face a three-year sentence for each count alleging they signed and filed their own false tax returns if convicted.

This story was originally published July 23, 2020 at 2:08 PM.