A local man in Houston, Joseph Patrick Butler, has confessed to submitting fraudulent information on his federal tax returns over a seven-year period, resulting in losses of $250,000, according to U.S. Attorney Nicholas J. Ganjei.
Butler admitted to filing false joint Form 1040 U.S. Individual Income Tax Returns from 2013 to 2020, enabling him to receive inflated tax refunds he was not legally entitled to. As part of his plea agreement, Butler acknowledged setting up shell companies that issued W-2 forms to himself, falsely claiming to earn significant wages and having substantial tax withholdings each year.
In truth, Butler had not earned any of the reported wages, and no taxes had been withheld. His fraudulent activities led to more than $260,000 in tax losses due to fake refunds.
Sentencing will be determined by U.S. District Judge Sim Lake on July 18. Butler is facing a potential prison sentence of up to three years and a possible maximum fine of $250,000.
Currently, Butler has been allowed to remain on bond until the sentencing hearing.
The investigation was conducted by IRS Criminal Investigation, while Assistant U.S. Attorneys Brad Gray and Shirin Hakimzadeh are handling the prosecution.