The conman duped his clients by claiming he had a specialized “secret tax credit” – a “special additional mortgage recording tax credit” – however the fraudulent deal charged the taxpayers up to 50 percent of the refund amount.
Investigators reported that the Fraud Analysis and Selection Team (FAST) discovered the refund scheme during normal processing of income tax returns.
“This case serves as a warning to dishonest tax preparers and the taxpayers who would consider using their illegal services,” said NYS Department of Taxation and Finance commissioner Thomas Mattox.
According to a release from the Tax Department, Alam pled guilty to attempted grand larceny in the fourth degree, received a conditional discharge and was ordered to make restitution to the state for $75,000 following an investigation by the Tax Department’s Criminal Investigations Division and prosecution by the Queens County District Attorney.
“Tax preparers are responsible for their clients’ financial well-being and must be held accountable when they betray that trust,” Mattox said.