Long Island tax preparer bilked IRS out of $12M in COVID scheme she used to buy jewelry, a Honda — and even a house in DR: prosecutors
A Long Island tax preparer allegedly bilked the IRS out of $12 million in a COVID scheme she used to buy jewelry, a Honda — and a house in the Dominican Republic.
Damaris Beltre, 57, filed false tax returns for her clients between 2021 and 2024, and launched a scheme to illegally obtain Payroll Protection Program loans during the pandemic, federal prosecutors said.
“The defendant’s fraudulent work as a tax preparer and in furtherance of a COVID-19 loan scheme, cost the government millions of dollars,” John Durham, US attorney for the Eastern District of New York, said in a statement Wednesday.
“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,” Durham added.
The feds say Beltre stole over $11 million through various tax schemes and another $1 million through PPP scams.
She allegedly got the money to fuel her expensive tastes by charging clients exorbitant prices for her fraudulent services — earning over $1 million in fees for her work including a percentage of any refund she helped get, according to the feds.
In one instance, an undercover investigation led an agent to seek out Beltre to file their tax returns. If done correctly, the agent would have owed around $205 to the IRS.
Instead, Beltre filed a return that saw the agent receive a $14,000 refund, charging the agent $2,200 in fees for getting him the massive payout.
According to the 42-count indictment, Beltre owned and operated three tax businesses, including Botanica El Poder De San Miguel, L&D Tax & Multi Service Corp, and D&L Tax Service while also having ties to a fourth company, Apollo Global Improvements.
In her roles as a tax preparer, Beltre allegedly orchestrated a massive scheme that involved falsifying dependents as well as claiming millions of dollars in COVID-19 sick leave credits and fuel tax credits.
According to the indictment, Beltre used $22,500 of fraudulently obtained PPP funds to make a payment on a house in the Dominican Republic in June 2020. Just one month later, she spent around $16,000 to buy a brand-new Honda CRV, prosecutors claimed.
Federal authorities also allege that between November 2021 and February 2022, Beltre and her family spent tens of thousands of dollars of fraudulently earned money, with Beltre withdrawing approximately $226,000 in cash from accounts under her control.
“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,” Harry Chavis Jr., a special agent in charge of the Internal Revenue Service’s criminal investigation, said in a statement.
“Beltre did not respect federal law, nor did she care about the victims of her fraud — the American people,” Chavis said. “This investigation has brought her scheming to an end, and she will now be prosecuted for her actions.”
