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

Kansas City Tax Preparer Sentenced for Nearly $1 Million Fraud Scheme

In a remarkable turn of events, a tax preparer in Kansas City, Missouri, has been sentenced to federal prison for engaging in a scheme that defrauded the government for nearly a whopping one million dollars. Ebens Louis-Loradin, a 45-year-old resident of the city, pleaded guilty to serious charges earlier this year, leading to his recent sentencing.

The Sentence and Consequences

On a serious note, U.S. District Judge Brian C. Wimes handed down a 20-month sentence to Louis-Loradin. Besides the prison time, he was also ordered to pay an astonishing $722,121 in restitution to the U.S. government. This amount represents just a part of the loss the government incurred due to his fraudulent activities.

A History of Fraudulent Returns

Many may wonder how someone could engage in such activities. Well, Louis-Loradin, who became a tax preparer back in 2012, effectively took advantage of his clients over a seven-year span from 2013 to 2020. According to court records, he prepared and submitted a staggering 154 fraudulent federal income tax returns, which had inflated refunds totaling approximately $953,873.

Now, here’s where it gets interesting. The inflated refunds not only misled the IRS but also boosted the fees he charged his clients. It turns out that his fraudulent claims included exaggerated dependents, inflated withholding amounts, and various credits like child and dependent care expenses and earned income credits. Simply put, he was making up numbers to increase the refunds due to clients, which in turn, allowed him to pocket more cash.

The Ripple Effect

This scheme didn’t just hurt the IRS but also left many of Louis-Loradin’s clients in a difficult situation. Many of them were completely unaware of the bogus claims being made on their behalf and are now in the process of repaying the IRS for the overpayments they didn’t even realize were happening. How unfortunate is that? It just goes to show that trust placed in professionals should always be matched with diligence.

Additional Misconduct

To make matters worse, Louis-Loradin didn’t just stop at defrauding the IRS. He failed to file his own federal tax returns for three consecutive years – 2016, 2017, and 2018. This revelation further showcases the extent of his disregard for tax laws.

Multiple Identities and Indictments

In a twist that sounds almost too unbelievable to be true, Louis-Loradin even used multiple identities to boost his fraudulent claims. He claimed at least seven minors as dependents on client tax returns, which is a serious breach of trust. It’s hard to fathom how he thought he could get away with such audacious moves.

His legal troubles began when he was indicted in July 2021 while he was residing in Haiti. He eventually made his way to Florida in May 2023, where law enforcement caught up with him, leading to his arrest.

A Final Word

This case serves as a strong reminder of the consequences of fraud and the importance of transparency in financial matters. While the IRS now attempts to recover losses from Louis-Loradin’s actions, the path to justice offers little comfort to the clients affected by this scheme. Isn’t it imperative to choose your tax preparer wisely and maintain an eye on your own financial engagements?

As the dust settles on this legal debacle, let’s hope for a future where tax preparers operate with integrity and clients stay vigilant. After all, trusting others with our financial well-being shouldn’t come with strings attached.