Three men, including a certified public accountant from Jamaica, have been arrested for what the Queens District Attorney is calling a $6 million state tax fraud scheme.
MD Hyder Alam, 47, of 175th Street in Jamaica and Mohammed Liton Khan, 55, of 81st Street in Ozone Park have been charged with first-degree attempted grand larceny, second-degree grand larceny, first-degree falsifying business records, first-degree scheme to defraud and second-degree criminal tax fraud.
Kazi Alamgir, 52, of Highland Avenue in Jamaica has been charged with second-degree grand larceny, first-degree scheme to defraud and second-degree criminal tax fraud.
District Attorney Richard Brown said the three participated in a scheme in which more than 350 New York State 2009 tax returns allegedly were submitted during a nine-month period in 2010, fraudulently seeking more than $6 million in tax credits for which taxpayers were ineligible.
The scheme allegedly was discovered by employees of the state’s Tax Department while routinely processing returns.
Brown said with this being tax season, people should be careful when hiring a tax preparer, as improper actions taken by an unscrupulous preparer could have an impact on the taxpayer’s own liability.
“In addition, taxpayers should know that there are no ‘secret tax credits’ known only to a few preparers, as alleged in this case,” Brown said.
Brown said his office is alleging that Alam prepared 367 returns in 2009 for which he claimed special mortgage recording tax credits on behalf of clients worth more than $6.1 million.
All but two of the returns allegedly listed the home address of the taxpayer as being the home address of either Khan or Alam.
It is alleged that Khan and Alamgir steered clients to Alam in return for a fee. Alam then allegedly told taxpayers he had been tipped of by a legislator to “secret mortgage recording tax credits” which do not exist.
They face up to 15 years in prison if convicted on all charges.