Massachusetts Man Pleads Guilty to Tax Fraud and Mail Fraud

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2013-12-04

Michael Edwards pleaded guilty to one count of corruptly endeavoring to obstruct the Internal Revenue Service (IRS) and one count of mail fraud, t he Justice Department and IRS announced. Both charges arise from Edwards’ operation of his tax return preparation business Boston Financial Associates (BFA) and Edwards’ misappropriation of income tax refunds from two of his clients in 2009.

According to court documents, Edwards admitted that he misled an IRS auditor reviewing one of his client’s 2007 and 2008 income tax returns by giving her false documentation that claimed to support the false entries on the returns. Edwards misappropriated federal income tax refunds of $573,518 from one client and $202,143 from a second client.

Sentencing for Edwards has been scheduled for Feb. 25, 2014. The statutory maximum penalty for corruptly endeavoring to obstruct the IRS is three years in prison and a $250,000 fine. The statutory maximum penalty for mail fraud is 20 years in prison and a $250,000 fine.

Source: U.S. Department of Justice

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