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NJ Man Convicted In $1.3M 'Mortgage Recovery' Scheme NJ Man Convicted In $1.3M 'Mortgage Recovery' Scheme
NJ Man Convicted In $1.3M 'Mortgage Recovery' Scheme A South Jersey man was convicted in federal court for his role in a scheme to defraud the IRS of more than $3 million. Jurors in U.S. District Court in Camden agreed that John Barry Jr., of Pemberton and accomplices in New York and elsewhere doctored tax returns that helped clients eliminate outstanding mortgage debts by claiming that a substantial amount of taxes had already been withheld. In exchange, Barry collected 20 to 35 percent of the refunds and split the money with his co-conspirators, federal prosecutors said. (Barry also didn’t file his own 2016 return or report any of his ill-…

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by Jerry DeMarco
News
More Stimulus Money Could Be On The Way, Feds Say More Stimulus Money Could Be On The Way, Feds Say
More Stimulus Money Could Be On The Way, Feds Say Haven’t received any federal stimulus checks yet? Well, now a fourth payment from the U.S. Treasury Department may arrive soon, federal officials say. Debate persists in the U.S. Congress and among other public officials over how many dollars will be spent and who will get the money, according to multiple news media reports. A couple dozen congressmen are pushing for new federal stimulus checks with a guarantee that the money will make it to Americans' bank accounts. Some lawmakers also are requesting that the federal government figures out ways to get the money to anyone without a bank…

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by Jon Craig
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Former Big-Time NJ Businessman Sent To Fed Pen For Payroll Scheme Former Big-Time NJ Businessman Sent To Fed Pen For Payroll Scheme
Former Big-Time NJ Businessman Sent To Fed Pen For Payroll Scheme A disgraced former up-and-coming New Jersey businessman who once tried to jump to his death from the George Washington Bridge is headed back behind bars. Jerry Carter Jr., 42, a self-described self-made millionaire was once touted as one of New Jersey’s “Top 40 Business People Under 40.’’ Then things went south. The Mercer County resident ended up spending more than two years behind bars on a tax evasion conviction after failing to report $1.8 million in income from a Hoboken payroll company he founded. Instead of staying straight following his release, Carter and two accomplices hatched a…

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by Jerry DeMarco
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Jersey Shore Contractor Admits Ducking $609,668 In Employment, Personal Income Taxes Jersey Shore Contractor Admits Ducking $609,668 In Employment, Personal Income Taxes
Jersey Shore Contractor Admits Ducking $609,668 In Employment, Personal Income Taxes The owner of a Jersey Shore construction and demolition company admitted in federal court Wednesday that he ducked employment and personal income taxes. Peter Alvarez, 54, of Atlantic Highlands didn’t report income from clients’ checks that he cashed and then used, in part, to pay employees at Mr. Demo, a construction and demolition business that he owned and operated in Leonardo, Acting U.S. Attorney Rachael A. Honig said. Rather than face a trial, Alvarez took a deal from federal prosecutors. In exchange for leniency, the Middletown native pleaded guilty to evading employment and person…

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by Jerry DeMarco
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NJ Con Man Who Swindled Elderly Out Of $2M Headed To Fed Pen NJ Con Man Who Swindled Elderly Out Of $2M Headed To Fed Pen
NJ Con Man Who Swindled Elderly Out Of $2M Headed To Fed Pen A confessed Somerset County con man is headed to federal prison for 6½ years for swindling elderly investors out of $2 million that he used, in part, to pay for his daughter’s college tuition and sorority fees. For nearly a decade, ex-financial advisor Daniel Rivera, 51, told primarily elderly investors that his Robbins Lane Properties was “staffed by experienced real estate professionals, Acting U.S. Attorney Rachael A. Honig said. Rivera promised a “guaranteed monthly income” thanks to a rate of return based on secure investments, she added. The truth, Honig said, was: “Robbins Lane had …

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by Jerry DeMarco
News
Philadelphia Tax Preparer From MontCo Charged With Filing Bogus Returns Philadelphia Tax Preparer From MontCo Charged With Filing Bogus Returns
Philadelphia Tax Preparer From MontCo Charged With Filing Bogus Returns The owner of a Philadelphia tax preparation business filed bogus returns for clients, a 29-count indictment returned by a federal grand jury charges. Eric Amaefuna, 65, of King of Prussia took a number of steps to defraud the IRS at American Financial Stewardship (AFS) in northeast Philadelphia from at least 2014 through 2016, the indictment says. These included claiming false or inflated employee business expenses, losses and miscellaneous deductions, as well as increasing the stated amount of state and local taxes paid, the indictment returned in Philadelphia says. Amaefuna's clients, in …

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by Cecilia Levine & Jerry DeMarco
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Jersey Shore Bookie Admits Running Own ‘Pick Six’ Lottery, Cash Prizes Topped $100,000 Jersey Shore Bookie Admits Running Own ‘Pick Six’ Lottery, Cash Prizes Topped $100,000
Jersey Shore Bookie Admits Running Own ‘Pick Six’ Lottery, Cash Prizes Topped $100,000 A Jersey Shore bookmaker admitted in federal court on Tuesday that he operated his own lottery game in Hudson County using the numbers from the New Jersey Lottery Pick Six to award winners. Up to 8,000 participants at a time selected six numbers from 1 to 49 at $20 a pop, Edward O’Neill, 54, told a U.S. District Court judge in Newark. The sole winner of the illegal lottery was whoever matched all six numbers selected in the official Pick Six drawing. Prizes often exceeded $100,000, said O’Neill, of Beachwood, who skimmed a 10% vig off the total bets. Like bookies of days past, O’Neill per…

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by Jerry DeMarco
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IRS Roots Out $440M In Fraud In First Year Of Pandemic Assistance, Hunts For More IRS Roots Out $440M In Fraud In First Year Of Pandemic Assistance, Hunts For More
IRS Roots Out $440M In Fraud In First Year Of Pandemic Assistance, Hunts For More Along with the welcome relief brought by the federal Paycheck Protection Program have come scams, more than 350 of which are tax and money laundering crimes that have totaled $440 million over the past year, the IRS says. On what will be the one-year anniversary of the Coronavirus Aid, Relief and Economic Security (CARES) Act this Saturday, the service’s top officials pledged to continue rooting out the wrongdoing. “As we continue to navigate through this pandemic, businesses and families continue to struggle through financial hardships,” said Michael Montanez, the special agent in charge o…

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by Jerry DeMarco
Business
COVID-19: NJ Man, 51, Scammed $1.9 Million From Business Relief Funds, U.S. Attorney Says COVID-19: NJ Man, 51, Scammed $1.9 Million From Business Relief Funds, U.S. Attorney Says
Covid-19: NJ Man, 51, Scammed $1.9 Million From Business Relief Funds, U.S. Attorney Says A Sussex County man was arrested Thursday on accusations of having obtained nearly $2 million in fraudulent loans through the federal government’s COVID-19 business relief plan. John Jhong, of Sparta, applied for 10 fraudulent PPP loans for businesses of which he claimed to be an owner, manager and/or partner, according to a statement from New Jersey Acting U.S. Attorney Rachael A. Honig. Jhong’s applications contained fraudulent statements and falsified records claiming to come from the IRS, authorities said. “In fact, according to IRS records, none of the tax documents Jhong submitted wi…

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by Valerie Musson
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SCAM ALERT: Don't Let Sketchy Tax Preparer Rip You Off, IRS Warns SCAM ALERT: Don't Let Sketchy Tax Preparer Rip You Off, IRS Warns
Scam ALERT: Don't Let Sketchy Tax Preparer Rip You Off, IRS Warns The IRS began accepting and processing 2020 tax year returns on Friday -- with a warning. Although most tax preparers deliver honest and professional service, “there’s a small number of dishonest preparers who set up shop during filing season to steal money and personal and financial information from clients,” said Michael Montanez, the special agent in charges of IRS Criminal Investigation’s Newark Field Office. Look no further than the results of some his squad’s year-round investigative work. The most recent example is Joseph Kenny Batts, a tax preparer in New Jersey who was sentence…

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by Jerry DeMarco
News
NJ Tax Preparer Gets 5 Years In Fed Pen For $1.6M IRS Scam NJ Tax Preparer Gets 5 Years In Fed Pen For $1.6M IRS Scam
NJ Tax Preparer Gets 5 Years In Fed Pen For $1.6M IRS Scam A twice-convicted tax preparer who helped New Jersey clients scam the IRS out of $1.6 million is headed to federal prison for the next five years. Joseph Kenny Batts, 52, of Elkridge, MD became the third of five men sentenced for preparing bogus tax returns at Tax Pro’s and Tax Solutions & Associates in Essex and Union counties. Batts, who already had a federal tax fraud conviction on his record, was the only one of the group to go to trial. U.S. District Judge Michael A. Shipp convicted him of conspiracy to defraud the United States, as well as five counts of aiding in preparing fals…

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by Jerry DeMarco
News
PA Residents Who Use Tax Prep Companies Could See Delayed Stimulus Checks PA Residents Who Use Tax Prep Companies Could See Delayed Stimulus Checks
PA Residents Who Use Tax Prep Companies Could See Delayed Stimulus Checks Pennsylvania residents who use tax preparation companies to file taxes might have to wait a little longer for their stimulus checks, state officials said. Tax preparation companies, like H&R Block and Intuit, use temporary bank accounts when they assist with filing tax returns, Attorney General Josh Shapiro explained. Unfortunately, the IRS used that information to issue stimulus checks, and therefore, some of the checks have been held up. "If you’re eligible for a stimulus check and haven’t received one, you can call the IRS or visit their website to file a complaint," Shapiro said. …

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by Nicole Acosta