Kansas City Tax Preparer Sentenced to 20 Months for $1 Million Fraud Scheme

Kansas City Tax Preparer Sentenced to 20 Months in Federal Prison for Fraudulent Scheme

Kansas City, Missouri – In a rather surprising turn of events, Ebens Louis-Loradin, a local tax preparer, has been handed a 20-month federal prison sentence for running a wire fraud scheme that swindled nearly $1 million from the IRS over a period of seven years. U.S. District Judge Brian C. Wimes announced the sentence, along with an order for Louis-Loradin to pay back a hefty $722,121 in restitution.

Louis-Loradin, who has been preparing taxes since 2012, pleaded guilty on March 27, 2024, to one charge of wire fraud and ten counts of aiding in the preparation of false tax returns. According to court records, he filed a staggering 154 fraudulent federal income tax returns during his time in operation, using various tricks to inflate his clients’ refunds by almost $1 million.

The Scheme Uncovered

As detailed in court documents, Louis-Loradin’s fraudulent claims weren’t just minor embellishments; he went all out. He claimed dependents that didn’t exist, exaggerated withholding amounts, and even concocted credits for child and dependent care expenses that were purely fictitious. What’s more, he included earned income credits and other unfounded items that ultimately resulted in a jaw-dropping $953,873 loss to the U.S. government.

The unraveling of his scheme has left many of his clients in a tricky situation, as numerous individuals who went to Louis-Loradin for help were completely unaware of the false claims being made on their behalf. In fact, many of these clients have now found themselves in hot water, having to repay the IRS for the overpayments that resulted from Louis-Loradin’s alteration of their tax returns.

A Pattern of Dishonesty

For all his years as a tax preparer, Louis-Loradin didn’t just stop at defrauding the government. He also failed to file his own federal tax returns for three consecutive years—2016, 2017, and 2018. How ironic is that? This wasn’t just a one-off incident; he was actively running a scam while neglecting his own tax responsibilities.

In an even more shocking twist, the court found that he utilized the identities of at least seven minors, falsely claiming them as dependents on his clients’ tax returns. Now, it’s hard to believe someone would resort to such desperate measures, but that’s what Louis-Loradin did.

A Long Road to Justice

The investigation into Louis-Loradin’s fraudulent activities saw its fair share of twists and turns. Interestingly, when he was indicted in July 2021, he was in Haiti. It wasn’t until May 2023 that he made the move to Florida, where he was finally arrested. Assistant U.S. Attorney Nicholas P. Heberle led the prosecution of this case, which was thoroughly investigated by IRS-Criminal Investigations.

Community Impact

For residents of Kansas City, this case serves as a reminder of the importance of vigilance in financial matters, especially when it comes to filing taxes. It’s crucial to select tax preparers who prioritize integrity and transparency. While many of Louis-Loradin’s clients were caught in his web of deceit, hopefully this story raises awareness and encourages others to do their homework when it comes to selecting a tax professional.

In conclusion, while Louis-Loradin’s sentencing may bring some sense of closure, it also leaves many with a bitter taste. The impact of his fraudulent actions has extended far beyond just the numbers—affecting real lives and families. Hopefully, moving forward, we can learn from this incident and ensure that such scams do not happen again.