North Carolina Tax Return Preparer Sentenced to Prison for Fraud

Reyna Nembiu admitted that she prepared multiple false individual income tax returns for clients

North Carolina Tax Return Preparer Sentenced to Prison for Fraud
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September 15, 2016

A Durham, NC-based tax return preparer has been sentenced to 12 months and one day in prison after pleading guilty to aiding in the preparation of false tax returns, Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the U.S. Department of Justice's (USDOJ) Tax Division, announced on Wednesday. Ciraolo was joined by Ripley Rand, U.S. Attorney for the Middle District of North Carolina.

According to documents filed with the court, Reyna Nembiu Montes operated "Su Manu Amiga," a tax return preparation business in Durham. Montes admitted that she prepared multiple false individual income tax returns for clients, claiming false dependents in order to generate fraudulent refunds.

Montes further admitted that she failed to disclose the existence of her tax return preparation business on her own personal income tax returns.

In addition to serving her prison sentence, Montes was also ordered to serve one year of supervised release and to pay restitution in the amount of $115,287 to the Internal Revenue Service (IRS).

Principal Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of IRS-Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Anand Ramaswamy and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted the case.

Additional information about the USDOJ's Tax Division and its enforcement efforts may be found on the division's website.