In San Antonio today, Richard Medina, Sr., admitted to the preparation of false U.S. Income Tax Returns which contained fraudulent deductions and making a false statement in U.S. bankruptcy proceedings, announced U.S. Attorney John F. Bash and IRS-Criminal Investigation Special Agent in Charge Richard D. Goss, Houston Field Office.
According to public records, the defendant operated an unnamed and unregistered tax preparation business out of his residence from 2013-2016. He assisted clients in preparing their federal income tax returns. On the tax returns he prepared and submitted to the IRS, Medina admittedly included false credits and itemized deductions. Specifically, on a client’s 2015 Individual Income Tax Return, Medina provided fraudulent figures—$6,245 in Residential Energy Credits and itemized deductions totaling $60,451—to which the tax preparer was not entitled. Medina further admitted that he produced over 30 fraudulent tax returns for others and four personal tax returns for a total loss to the U.S. government of $273,372.
Prior to 2013, Medina and his wife filed for bankruptcy protection under Chapter 13. By pleading guilty, Medina admitted that he failed to report to the U.S. Bankruptcy Trustee income derived from his tax preparation business since 2013. Medina also admitted that he made false statements to the Social Security Administration omitting his income derived from his tax return preparation business in order to obtain Social Security disability benefits he would not have otherwise received.
Medina faces up to three years in federal prison and restitution to the IRS for the false tax return charge and up to five years in federal prison for making a false statement in U.S. bankruptcy proceedings. Medina remains on bond pending sentencing scheduled for September 16, 2020, before U.S. District Judge Xavier Rodriguez.
Agents with the IRS—Criminal Investigation conducted this investigation. Assistant U.S. Attorney William R. Harris is prosecuting this case on behalf of the government.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.