HSI investigates CPA who prepared false income tax return

ROCK SPRINGS, Wyo. — A Certified Public Accountant practicing in Wyoming, was sentenced by U.S. District Court Judge Alan B. Johnson to 120 days of imprisonment, followed by one year of supervised release for aiding and assisting in the preparation of false tax returns filed with Internal Revenue Service.

The case was investigated by the Internal Revenue Service-Criminal Investigation (IRS-CI), Homeland Security Investigations (HSI) and the Division of Criminal Investigations (DCI) and was prosecuted by Assistant United States Attorney Stephanie I. Sprecher.

Paul Edman, 53, plead guilty in March 2021.

In February 2017, agents from IRS-CI, HSI and the DCI, interviewed Edman about several of his clients, who are local restaurant owners and were believed to be suppressing cash sales. After a thorough investigation, including the use of a grand jury and interviews, the government determined Edman had willfully counseled the restaurant owners in the preparation of Internal Revenue Service Form 1040 for calendar year 2014, knowing that Form 1040 was false.

Edman made significant adjustments to both personal and business expenses related to the family-owned restaurants to reduce their tax bill, which totaled nearly $645,000. He recommended ways, via email, in which they could deduct expenses in a fashion that would not stand out in an audit. This communication was easily traced and proved that Edman willfully provided the advice in an effort to defraud the United States government. Ultimately, Edman reduced the amount of his client’s tax bill by $72,000 and then signed and filed the tax return electronically.

HSI is a directorate of ICE, responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel and finance move. HSI’s workforce of over 10,400 employees consists of more than 7,100 Special Agents assigned to 220 cities throughout the United States, and 80 overseas locations in 53 countries. HSI’s international presence represents DHS’s largest investigative law enforcement presence abroad and one of the largest international footprints in U.S. law enforcement.

To report a crime, call 866-347-2423 (TTY for hearing impaired: 802-872-6196) or visit the ICE Tip Line.