Clarkston tax preparer sentenced to 2 years for tax fraud
ATLANTA - Mohamed Hersi, 40, of Decatur, has been sentenced to federal prison for his role in a tax fraud scheme that involved filing false income tax returns for unsuspecting clients. Hersi owned and operated Map Wireless Inc., which was doing business as "1st Tax Center," "Metro Tax Center," and "Investment Financial Services" in Clarkston.
U.S. Attorney Ryan K. Buchanan expressed disappointment in Hersi's actions, stating, "The community trusted Hersi to provide sound tax advice to comply with our tax laws. But Hersi betrayed his clients’ trust, pocketed their fees, and then lied on his own returns."
The seriousness of tax return preparer fraud was underscored by Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office, who emphasized, "Tax return preparer fraud is a serious breach of responsibilities for themselves and on behalf of their clients, leading to degrading trust and confidence in our tax system."
The charges and details presented in court revealed that between 2016 and 2020, Hersi engaged in a systematic pattern of preparing and filing false income tax returns for his clients. These returns included falsely claimed Schedule C items, withholdings, education credits, expenses, and itemized deductions, resulting in inflated refunds to which the clients were not entitled.
Hersi's deceptive tactics extended to providing clients with one version of the return he intended to file, only to submit a different version to the IRS. This alternate version included both falsely claimed items and different direct deposit information, further complicating the investigation.
Throughout the scheme, Hersi managed to collect over $1.2 million in fees from his clients. Shockingly, he failed to disclose this substantial income to the IRS, causing a loss of more than $400,000.
As a consequence of his actions, Hersi has been sentenced to two years in federal prison, to be followed by one year of supervised release. Additionally, he has been ordered to complete 40 hours of community service and to pay restitution in the amount of $439,543. Importantly, Hersi is now prohibited from preparing taxes for others in the future.
The investigation into Hersi's fraudulent tax schemes was led by the Internal Revenue Service Criminal Investigation. The case serves as a stark reminder of the legal consequences individuals face for undermining the integrity of the tax system.