NORTH FLORIDA, Fla. — A pair of Florida men have pleaded guilty to their roles in a wide-reaching tax fraud scheme involving a dozen return preparation offices across the state. The operation included locations that reached into North Florida, federal prosecutors said.
According to the U.S. Department of Justice, Franklin Carter Jr. of Sanford and Jonathan Carrillo of St. Cloud owned and operated two companies, Neighborhood Advance Tax and Taxmates. Prosecutors say the businesses submitted fraudulent returns and trained others to do the same.
Between 2016 and 2020, the men and their co-conspirators fabricated deductions to inflate tax refunds and caused the IRS to lose more than $12 million. Court documents say they held regular training sessions to instruct employees and franchisees how to prepare false tax returns.
The scheme reportedly continued when they rebranded under the name Taxmates and used the same office locations.
The operation is said to have spanned a dozen locations throughout Florida, affecting multiple regions, including North Florida communities.
Acting Deputy Assistant Attorney General Karen E. Kelly and Interim U.S. Attorney Gregory W. Kehoe for the Middle District of Florida announced the guilty pleas.
Mr Carter also admitted that he failed to file personal tax returns for the years 2019 through 2021. He faces a maximum of five years in prison for conspiracy and up to three additional years for failing to file returns.
Carrillo also faces up to five years in prison for conspiracy and up to three years for each count of preparing false returns.
Several co-conspirators have also pleaded guilty in connection to the same scheme, including Diandre Mentor, Abryle de la Cruz, Emmanuel Almonor, Adon Hemley, and Isaiah Hayes.
The case is being prosecuted by Trial Attorney Michael L. Jones of the DOJ Tax Division and Assistant U.S. Attorney Megan Testerman. The IRS Criminal Investigation Tampa Field Office led the investigation.
The IRS encourages taxpayers to verify the credibility of return preparers and report suspected fraud at IRS.gov.
