Former Wilmington Tax Preparer Sentenced to 80 Months in Federal Prison

Source: US FBI

Wilmington, Del. – A Wilmington man was sentenced today to 80 months in federal prison for leading a fraud scheme that resulted in more than $9.1 million in disaster-relief loans being issued to more than 60 businesses across the country.  None of the loans were ever repaid. 

According to court documents, Jady Solano, 43, was a tax preparer in Wilmington.  Solano used his tax expertise to prepare fraudulent applications for loans available under the Paycheck Protection Program—a COVID-19 relief program designed to safeguard workers’ jobs during the pandemic.  Solano prepared the applications on behalf of shell companies that, in fact, had no operations or employees.  Solano falsely claimed, however, that the companies had substantial payrolls, sometimes north of $1 million annually.  Solano also created false documents, including false tax forms and bank statements, to support the applications.    

In total, Solano prepared 62 fraudulent applications, resulting in more than $9.1 million in wrongful loan disbursements.  Solano personally received nearly $1.4 million through the scheme, all of which he must repay to the federal government pursuant to a restitution order to be entered by the U.S. District Court. 

Across two charging instruments, seven other members of Solano’s scheme have been charged.  Those members are:

Julianne Murray, U.S. Attorney for the District of Delaware, stated, “The American taxpayers work hard for their money.  And we will work hard to ensure that, when taxpayer money is misused—through waste, fraud, or abuse—the wrongdoers are brought to justice.  Jady Solano led a nationwide scheme to steal more than $9 million from the federal government.  And the funds he stole were meant for an especially important purpose: helping American workers keep their jobs during a deadly pandemic.  Solano’s egregious misconduct warranted the substantial prison sentence the Court handed down today.  We hope that sentence sends a message to other potential white-collar criminals: in this District, financial crimes simply will not pay.  We thank our law enforcement partners at IRS-CI and the FBI for their tireless and terrific work on this important case.” 

“Today’s sentencing of Jady Solano again emphasizes that the Internal Revenue Service-Criminal Investigation will continue their aggressive pursuit of those who use fraudulent methods in an attempt to corrupt our nation’s tax system,” stated Yury Kruty, Special Agent in Charge, IRS-Criminal Investigation, Philadelphia Field Office.

“62 times – over and over and over again – Solano fabricated, embellished and lied to steal millions from the government and ultimately, every taxpaying citizen. Now he will pay for each of those lies with this lengthy sentence,” said FBI Baltimore Special Agent in Charge William J. DelBagno. “The FBI will continue to partner with our fellow agencies to identify and unravel these fraud schemes and bring criminals to justice.”

First Assistant U.S. Attorney Benjamin L. Wallace prosecuted the case.  Agents of the Internal Revenue Service, Criminal Investigation and the FBI Baltimore Field Office’s Wilmington Resident Agency investigated the case. 

A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware.  Related court documents and information are located on the website of the U.S. District Court for the District of Delaware or on PACER by searching for Case Nos. 24-cr-91 and 24-cr-109.