2 Tax Preparers Plead Guilty to Conspiracy Charges
Two Santa Ana men have pleaded guilty to federal conspiracy and obstruction charges in operating a tax preparation business that preyed on Spanish-speaking people.
Joel Castaneda, 32, and Abel Toledo, 20, pleaded guilty Monday to conspiring to defraud the government and attempting to interfere with the Internal Revenue Service investigation into their business, World Financial Services in Santa Ana. Castaneda also pleaded guilty to submitting false claims.
An indictment accused them of preparing two false sets of returns, one for customers and the other for the IRS. They turned in the returns with higher refund claims to the IRS, illegally obtaining $43,000 in refunds, the indictment alleged.
They also accompanied their customers to financial institutions to cash the refund checks, then demanded large portions of cash for themselves, prosecutors said.
Castaneda faces up to 18 years in prison and Toledo up to 13 years.
Sentencing is scheduled April 13 before U.S. District Judge Terry J. Hatter Jr.
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