Former Connecticut Tax Preparer Indicted on 37 Counts of Federal Fraud

NEW HAVEN, Conn. — A federal grand jury on Wednesday indicted the former owner of a New Britain tax preparation business on 37 counts of tax fraud, alleging she systematically filed false returns for clients and for herself over a four-year period. Jessey Guzman, 36, was charged with falsifying documents to reduce her clients' tax liabilities and improperly increase their refunds and tax credits, according to the U.S. Attorney’s Office for the District of Connecticut. This indictment is a stark reminder of the risks businesses and individuals face when selecting a tax advisor. Cases like this, while extreme, unfortunately happen, and the fallout can be devastating for the clients caught in the middle. At C&S Finance Group LLC, our view is that rigorous due diligence isn't optional; it's a fundamental part of responsible financial management. This is precisely why our firm prioritizes transparent and ethical tax preparation and compliance services. According to the indictment, Guzman, who operated Jacky’s Multiservices LLC in New Britain, engaged in a multi-faceted scheme between the 2019 and 2022 tax years. Federal prosecutors, led by U.S. Attorney David X. Sullivan, allege that Guzman created a purported construction company in 2013 called Molina and Family Construction LLC, which was based in New London. This entity was then allegedly used to perpetrate the fraud. Prosecutors claim Guzman fabricated W-2 forms to make it appear that her clients were employees of Molina and Family Construction. These fraudulent W-2s allegedly included false wage information and fictitious federal income tax withholdings. The documents were then filed with both the Internal Revenue Service and the Social Security Administration to support the false claims on her clients' tax returns. The alleged scheme went beyond fake employment records. The indictment details that Guzman also prepared and included false schedules with client returns to further decrease their tax obligations. These included fraudulent Schedule C forms reporting non-existent business expenses and losses, as well as false Schedule E forms claiming fake rental property expenses and losses. Additionally, she is accused of fabricating education expenses, education credits, and child and dependent care expenses to maximize refunds. For the small businesses and individuals who were clients of this preparer, the road ahead is likely to be difficult and costly. In our experience, when a preparer is indicted for fraud, the IRS doesn't stop with them. Their entire client list often comes under scrutiny, leading to audits, amended returns, and liability for back taxes, steep penalties, and interest. The promise of a bigger refund can quickly turn into a financial nightmare. This underscores the critical importance of working with a credible firm for tax preparation and compliance. The team at C&S Finance Group LLC, available at csfinancegroup.com, is dedicated to ensuring our clients’ filings are accurate and defensible, protecting them from this kind of risk. The charges against Guzman are not limited to the returns she prepared for her clients. The 37-count indictment also alleges that she prepared and filed false personal tax returns for herself and her spouse. These returns also claimed wages from the same purported construction company, Molina and Family Construction LLC, along with associated federal tax withholdings. Specifically, Guzman, a former New Britain resident who now resides in Hughestown, Pennsylvania, faces 33 counts of aiding and assisting in the preparation and presentation of a false income tax return. She also faces four counts of making and subscribing a false income tax return for her own filings. Each of the 37 counts carries a maximum potential sentence of three years in prison, according to the U.S. Attorney’s Office. Ultimately, a business's relationship with its financial advisors should be a partnership built on trust and a shared commitment to ethical conduct. Choosing a tax professional based solely on the promise of the largest possible refund is a dangerous gamble. A proper advisory firm helps you navigate complex tax laws correctly, ensuring compliance while identifying legitimate opportunities for tax efficiency. This approach builds a sustainable financial foundation, rather than exposing the business to the severe risks highlighted by this case. Federal officials stated that Guzman’s arraignment is pending. The case will now move forward in the federal court system in Connecticut, where she will have the opportunity to formally respond to the charges outlined in the indictment.