Source: United States Attorneys General
Defendant Promoted Fraudulent Syndicated Conservation Easement Tax Shelters to Clients
A New Jersey Certified Public Accountant (CPA) pleaded guilty yesterday to conspiring to defraud the United States by promoting fraudulent tax shelters to his high-income clients.
According to court documents and statements made in court, between 2018 and 2019, Ofer Gabbay, a CPA, of Paramus, New Jersey, conspired with others, including Jack Fisher, James Sinnott, and their assistant Kate Joy to promote fraudulent syndicated conservation easement tax shelters to their clients. These tax shelters facilitated high-income taxpayers in claiming unwarranted and inflated charitable contribution tax deductions in connection with the donation of a conservation easement over land. To carry out the scheme, Gabbay and others instructed clients to provide backdated checks, agreements and other documents to support the unwarranted tax deductions. Gabbay then prepared false tax returns for his participating clients.
Fisher and Sinnott were sentenced to 25 year and 23 years in prison, respectively, for their roles in the scheme. Joy remains a fugitive.
Gabbay faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Senior Litigation Counsel Richard Rolwing and Trial Attorney Parker Tobin of the Tax Division are prosecuting the case.