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Tax Fraud Blotter: Sizzling scoops served!

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• Fisherman Joaquin Sosa has been sentenced to 18 months in prison for evading taxes on income. Sosa caused a tax loss to the IRS of $520,415.
• Alvin Pates has pleaded guilty to bank and tax fraud, admitting that he participated in a scheme to deceive banks by using straw borrowers and bogus financial information to obtain loans. Pates admitted that the value of the fraudulent loans charged in the indictment is $87,000 and that he will be required to pay restitution of at least $40,500.

Fisherman Joaquin Sosa has been sentenced to 18 months in prison for evading taxes on income. Sosa worked as a commercial fisherman and deckhand operating primarily out of the Port of New Bedford. Despite receiving some $1.9 million in income between 2012 and 2021, he did not file tax returns reporting the income and did not pay the income taxes owed. Sosa also worked under false identities over the years and cashed paychecks at check-cashing businesses, at times using false identities. In total, Sosa caused a tax loss to the IRS of $520,415. He was also ordered to serve three years of supervised release and pay that amount in restitution to the U.S.

Alvin Pates has pleaded guilty to bank and tax fraud, admitting that he participated in a scheme to deceive banks by using straw borrowers and bogus financial information to obtain loans. Beginning as early as July 2014 and continuing through at least April 2020, Pates used the names, SSNs and credit of straw borrowers to obtain loans and LOCs that primarily benefited himself. He admitted to aiding and assisting in the preparation of false returns for two taxpayers for calendar 2015. He funneled most of the money through the bank accounts of one of his shell companies to use for his personal benefit. Pates admitted that the value of the fraudulent loans charged in the indictment is $87,000 and that he will be required to pay restitution of at least $40,500. He was also ordered to serve three years’ supervised release and pay some $268,634 restitution to the United States.

Other tax fraud cases highlighted in the article include the conviction of a hospital dietician for filing false returns and obstructing the IRS, a businessman sentenced for failure to pay employee trust fund taxes, an illegal sports-gambling operator sentenced for tax evasion and money laundering, a business owner pleading guilty to tax evasion, and a tax preparer sentenced for preparing and filing false returns on behalf of his clients.

Overall, the article highlights the consequences faced by individuals involved in tax fraud, including prison sentences, supervised release, and restitution payments. It serves as a reminder of the importance of complying with tax laws and the severe penalties for those who choose to engage in fraudulent activities.

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