New Jersey CPA pleads guilty to conspiring to defraud United States

(WPHL) — A Certified Public Accountant in New Jersey has pleaded guilty to conspiring to defraud the United States.

Ofer Gabbay, a CPA from Paramus, New Jersey, “promoted fraudulent tax shelters to his high-income clients,” said the US Department of Justice.

According to court documents and statements made in court, between 2018 and 2019, Gabbay conspired with Jack Fisher, James Sinnott, and their assistant Kate Joy to promote fraudulent syndicated conservation easement tax shelters to their clients.

The tax shelters helped high-income taxpayers claim unwarranted and inflated charitable contribution tax deductions.

Gabbay allegedly instructed clients to provide backdated checks, agreements, and other documents to support the unwarranted tax deductions. Gabbay then prepared false tax returns for his participating clients, the DOJ said.

Gabbay faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties.

Fisher and Sinnott were sentenced to 25 years and 23 years in prison, respectively, for their roles in the scheme. Joy remains a fugitive.

The IRS Criminal Investigation is continuing to investigate this case.