A Newark tax preparer received a sizeable award from the Paycheck Protection Program just one and a half months before being indicted by federal grand jury of filing 44 false tax returns.
Sylvain Dienhoue, a Pennsylvania resident, pleaded guilty to three counts of aiding and assisting in the preparation of false and fraudulent tax returns Wednesday, acting U.S. Attorney Rachael Honig announced Wednesday, the same day Dienhoue’s indictment was unsealed.
While working as a tax preparer at Cadi’s Multi Services, a firm he owned and operated, Dienhoue allegedly inflated expenses and itemized deductions to secure larger tax refunds, federal authorities said.
A month before his July 8 indictment, Cadi’s received a loan worth between $150,000 and $350,000 under the Paycheck Protection Program, a pandemic-era program that provides forgivable loans to businesses to help keep workers employed amid shutdowns and plummeting revenues.
The three counts Dienhoue pleaded guilty to each carry penalties of up to three years imprisonment and fines not to exceed $250,000. He’s set to be sentenced on May 24, 2021, exactly one year after his firm’s Paycheck Protection Program loan was approved.
IRS Criminal Investigation Special Agent in Charge Michael Montanez led the investigation. Assistant U.S. Attorney Samantha Fasanello represented the government, while Keith Hirschorn argued on Dienhoue’s behalf.