Date: May 2, 2023
Contact: [email protected]
A New Jersey certified public accountant (¡°CPA¡±) pleaded guilty today to conspiring to defraud the United States by promoting fraudulent tax shelters to high-income clients.
According to court documents and statements made in court, James H. Benkoil of Avon-by-the-Sea, New Jersey, promoted fraudulent syndicated conservation easements in which several investors form a partnership or company to purchase or invest in land, then donate the property for a charitable deduction. The scheme facilitated false claims of inflated charitable contribution tax deductions in connection with the ¡°donation¡± of the conservation easement over land, allowing Benkoil¡¯s high-income clients to buy deductions to illegally shelter their income from taxation.
Between 2009 and 2020, while working as a CPA, Benkoil and others, promoted such fraudulent syndicated conservation easement tax shelters by obtaining falsely inflated land appraisals to achieve the desired amount of tax deductions. As a part of his guilty plea, Benkoil admitted his conduct resulted in a tax loss to the IRS of nearly $2.5 million and has agreed to pay full restitution.
Benkoil faces a maximum penalty of five years in prison, as well as a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department¡¯s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Christopher Magnani and Richard Rolwing of the Justice Department¡¯s Tax Division are prosecuting the case.