A professional tax return preparer in Texas recently pleaded guilty to “engaging in a multi-year conspiracy to prepare and file false tax returns on behalf of clients and obtaining a fraudulent loan under the Paycheck Protection Program” (“PPP”). The proceeding was held before U.S. Magistrate Judge Jeffrey C. Manske.

According to court documents and statements made in court, between 2012 and 2017 Labanda Loyd, of Waco, managed two tax return preparation businesses and also worked as a return preparer. Loyd conspired with others at both businesses to prepare and file false returns that fraudulently claimed refunds the clients were not entitled to receive. As a manager, Loyd personally instructed some of her co-conspirators how to prepare false tax returns.

For some clients, Loyd and her co-conspirators completely fabricated wage and tax withholdings. For others, they altered the wages and withholdings legitimately reported to the IRS by their employers. Loyd’s co-conspirators include Lashamekwa Alexander, Deidra Brandon, Melissa Johnson, Shaterian Parr, Jaleesia Sais, and Tevin Thompson, all of whom have pleaded guilty to the tax conspiracy or other crimes. In all, the co-conspirators caused a tax loss exceeding $1.8 million.