Tax Preparer Admits to $12 Million Fraud Scheme

A former tax preparer from Freeport, Damaris Beltre, has pleaded guilty in federal court to defrauding the U.S. government and various pandemic-era business loan programs out of a staggering $12 million. The 58-year-old admitted to using the money to fund extravagant purchases, including a home in the Caribbean, a luxury car, and fine jewelry.

Guilty Plea and Charge Details

Beltre entered her guilty plea before U.S. District Judge Sanket J. Bulsara, facing charges of two counts of wire fraud and one count of aiding in the preparation of false tax returns. She is scheduled for sentencing on May 26, where she could face a maximum of 20 years for one count of wire fraud and up to 30 years for the second count. Additionally, she faces up to three years for the tax return charge.

Financial Restitution and Fraudulent Activities

Alongside her anticipated prison sentence, Beltre has agreed to pay approximately $11.6 million in restitution. In federal court in Central Islip, she confessed to preparing over 800 fraudulent tax returns for different clients, resulting in nearly $11 million in unjustified refunds and significant unpaid taxes owed to the Internal Revenue Service (IRS).

Fraudulent Loan Applications

In conjunction with her ex-husband, Beltre also acknowledged submitting at least five fraudulent Paycheck Protection Program (PPP) loan applications, successfully securing $1 million in loans by providing false details about payroll and employee counts. “I wasn’t entitled to these loans,” Beltre stated, revealing that she utilized her share for business debts and personal luxurious items.

Larger Fraud Network Accusations

Beltre is among 47 individuals from Long Island charged with alleged fraud against various federal programs, including the PPP and the Economic Injury Disaster Loan program. Collectively, the accused parties are believed to have embezzled over $93 million, impacting numerous sectors and taxpayers across the region.

Detention and Court Appearance

Since her arrest at Kennedy Airport—where authorities intercepted her prior to a flight to the Dominican Republic—Beltre has been held for 10 months at Brooklyn’s Metropolitan Detention Center. During her court appearance, she was seen wearing a tan uniform and briefly made eye contact with relatives but was restricted from communicating with them.

A Warning Against Fraudulent Activities

In a statement following Beltre’s guilty plea, Joseph Nocella Jr., the U.S. Attorney for the Eastern District of New York, stressed that her actions serve as a dire warning for individuals who exploit federal programs for personal gain. “You will be arrested and vigorously prosecuted,” he emphasized, reiterating the government’s commitment to upholding integrity in federal financial programs.