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Date: 03-11-2019
Case Style:
United States of America v. Samuel Davis, Jr. and Kyna Felder-Ruiz
Case Number: 2:18-cr-00205-SDW
Judge: Susan D. Wigenton
Court: United States District Court for the District of New Jersey (Essex County)
Plaintiff's Attorney: Ryan L. O'Neill
Defendant's Attorney: Thomas Ashley for Davis
Anthony Iacullo for Felder-Ruiz
Description:
Newark, NJ - Tax Preparers Admit Roles In Tax Fraud Scheme
Two Union County, New Jersey, tax preparers today admitted their respective roles in conspiring to defraud the IRS, filing false personal tax returns, and witness tampering, U.S. Attorney Craig Carpenito announced.
Samuel Davis Jr., 52, of Plainfield, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to one count of conspiring to defraud the IRS by aiding and abetting the filing of false tax returns, one count of filing false personal tax returns, and one count of witness tampering. Kyna Felder-Ruiz, 35, also of Plainfield, pleaded guilty to one count of conspiring to defraud the IRS by aiding and abetting the filing of false tax returns.
According to documents filed in this case and statements made in court:
Davis was the owner and operator of Get Organized Tax & Accounting (GOTA), a tax preparation business in Plainfield. Davis retired as a detective sergeant from the N.J. State Police in 2016 after 28 years. Felder-Ruiz, who was employed by the N.J. State Police as a public safety dispatcher for approximately two years, was employed as a tax preparer at GOTA. For tax years 2011 to 2016, Davis and Felder-Ruiz prepared false individual income tax returns for various GOTA clients. They used a number of fraudulent practices, including falsely claiming deductions and fabricating educational credits in order to obtain refunds for their clients in amounts substantially greater than those to which the taxpayers were entitled.
For tax years 2012 through 2014, Davis filed false personal income tax returns by underreporting business income that he derived from GOTA. By doing so, Davis defrauded the IRS of tens of thousands of dollars in taxes. He also admitted that in October 2018 he became aware that his son had received a subpoena to appear before a grand jury. Davis admitted attempting to persuade his son to provide false testimony to the grand jury.
The tax fraud conspiracy charge to which Davis and Felder-Ruiz pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. The witness tampering charge to which Davis pleaded guilty carries a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing both defendants is scheduled for June 11, 2019.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty pleas.
Charges:
Davis:
18:371 CONSPIRACY TO DEFRAUD THE INTERNAL REVENUE SERVICE (dof 3/2012-4/2018)
(1)
18:371 CONSPIRACY TO DEFRAUD THE INTERNAL REVENUE SERVICE (dof 3/2012-2018
(1s)
26:7206 (2) AIDING AND ASSISTING IN THE PREPARATION AND PRESENTATION OF FLASE AND FRAUDULENT RETURNS (dof 2/9/2012-4/14/2017)
(2-9)
26:7206(2) AIDING AND ASSISTING IN THE PREPARATION AND PRESENTATION OF FALSE AND FRAUDULENT RETURNS (dof 2/9/2012-4/14/2017)
(2s-9s)
26:7206(1) MAKING AND SUBSCRIBING FALSE RETURNS (dof4/17/2012-10/15/2014)
(10-12)
26:7206(1) MAKING AND SUBSCRIBING FALSE RETURNS (dof 4/17/2012-10/15/2014)
(10s-11s)
26:7206(1) MAKING AND SUBSCRIBING FALSE RETURNS (dof 4/17/2012-10/15/2014)
(12s)
18:1512(b)(1) and 2 WITNESS TAMPERING (dof 10/11/2018-10/30/2018)
(13s)
Felder-Ruiz
18:371 CONSPIRACY TO DEFRAUD THE INTERNAL REVENUE SERVICE (dof 3/2012-4/2018)
(1)
18:371 CONSPIRACY TO DEFRAUD THE INTERNAL REVENUE SERVICE (dof 3/2012-2018
(1s)
26:7206 (2) AIDING AND ASSISTING IN THE PREPARATION AND PRESENTATION OF FLASE AND FRAUDULENT RETURNS (dof 2/9/2012-4/14/2017)
(2-9)
26:7206(2) AIDING AND ASSISTING IN THE PREPARATION AND PRESENTATION OF FALSE AND FRAUDULENT RETURNS (dof 2/9/2012-4/14/2017)
(2s-9s)
Outcome: 03/11/2019 39 Minute Entry for proceedings held before Judge Susan D. Wigenton:Change of Plea Hearing as to KYNA FELDER-RUIZ held on 3/11/2019, Plea entered by KYNA FELDER-RUIZ (2) Guilty Count 1s, ( Sentencing set for 6/11/2019 at 11:00 AM in Newark - Courtroom 5C before Judge Susan D. Wigenton.) Any submissions to be reviewed by the Judge for sentencing must be submitted five (5) business days before date of sentencing. Courtesy copies of any submissions exceeding 10 pages should be mailed directly to Chambers. Counsel should be advised that any submission received after the deadline will not be considered. Further, counsel will be precluded from orally arguing the issues set forth in any untimely submissions. (Court Reporter/Recorder Joanne Sekella.) (cds, ) (Entered: 03/11/2019)
03/11/2019 40 APPLICATION for permission to enter Plea of guilty as to KYNA FELDER-RUIZ. (cds) (Entered: 03/11/2019)
03/11/2019 41 PLEA AGREEMENT as to KYNA FELDER-RUIZ (cds) (Entered: 03/11/2019)
03/11/2019 42 Minute Entry for proceedings held before Judge Susan D. Wigenton:Change of Plea Hearing as to SAMUEL DAVIS, JR held on 3/11/2019, Plea entered by SAMUEL DAVIS JR. (1) Guilty Count 1s,12s,13s, ( Sentencing set for 6/11/2019 at 11:00 AM in Newark - Courtroom 5C before Judge Susan D. Wigenton.) Any submissions to be reviewed by the Judge for sentencing must be submitted five (5) business days before date of sentencing. Courtesy copies of any submissions exceeding 10 pages should be mailed directly to Chambers. Counsel should be advised that any submission received after the deadline will not be considered. Further, counsel will be precluded from orally arguing the issues set forth in any untimely submissions. (Court Reporter/Recorder Joanne Sekella.) (cds) (Entered: 03/11/2019)
03/11/2019 43 APPLICATION for permission to enter Plea of guilty as to SAMUEL DAVIS, JR. (cds) (Entered: 03/11/2019)
03/11/2019 44 PLEA AGREEMENT as to SAMUEL DAVIS, JR (cds) (Entered: 03/11/2019)
Plaintiff's Experts:
Defendant's Experts:
Comments: