Three Sisters Sentenced in Major Tax Fraud Scheme: A Detailed Overview
Introduction to the Case
In a significant legal decision, three sisters from the Rio Grande Valley were sentenced for engaging in a conspiracy to file fraudulent tax returns with the IRS. The United States Attorney’s Office for the Southern District Court disclosed the details of this case, highlighting a scheme that undermined the integrity of tax preparation.
The Sentencing Details
On May 2, Maria Lourdes Campos, Elizabeth Romo, and Gloria Romo entered guilty pleas related to their illicit activities. Subsequently, they were sentenced on a Wednesday, with the following outcomes:
- Maria Lourdes Campos was sentenced to over three years in prison and ordered to pay $151,741 in restitution.
- Elizabeth Romo received a three-year prison sentence alongside a restitution of $119,793.
- Gloria Romo was granted a one-year supervised release, with a restitution payment of $9,528.
How the Fraud Was Executed
The court proceedings revealed a disturbing pattern of fraudulent practices at Campos Tax Service, where employees were involved in preparing inflated tax returns without anyone explicitly instructing them to do so. This systemic fraud was designed to maximize client refunds and enhance the earnings of the business.
Financial Gains from Fraudulent Activities
According to court testimony, Maria Campos benefited significantly from these illegal practices. For over ten years, she operated the business, during which she managed to purchase luxury vehicles and expand her operations to three locations. Under her leadership, Campos Tax Service filed approximately 6,501 federal income tax returns with fraudulent claims totaling over $5 million in residential energy credits between 2018 and 2020.
The Mechanics of the Fraud
The fraudulent claims primarily revolved around residential energy credits, business expenses, and childcare credits. Employees involved in the tax preparation would complete the forms but would not discuss them with clients, providing only estimated refund amounts or incomplete documents. This strategic oversight ensured that clients were less aware of the inaccuracies in their submissions.
Total Tax Harm Caused
The total sustained tax harm attributed to the sisters’ fraudulent activities amounted to a staggering $3,672,472. This organized scheme not only secured substantial financial rewards for the sisters but also posed a severe threat to the trust placed in tax preparers across the nation.
Implications of the Fraud
Lucy Tan, the acting special agent in charge of the IRS Criminal Investigation’s Houston Field Office, commented on the broader implications of the case. She noted, “The Campos and Romo sisters turned their family business into a large-scale tax fraud operation, expanding their scheme across multiple locations.” This operation not only yielded financial gains but also eroded the public’s trust in the integrity of licensed tax preparers, who are fundamentally responsible for accurate tax submissions.
Conclusion and Next Steps
Despite the serious nature of their crimes, all three sisters were allowed to remain on bond and were instructed to voluntarily surrender to a Bureau of Prisons facility. This case serves as a powerful reminder of the consequences of engaging in tax fraud and its impact on communities and the economy.
For more information about tax fraud and legal proceedings, learn more from IRS Criminal Investigations.
