YONKERS — Joseph Clay pleaded guilty to one count of aiding and assisting in the preparation of a false and fraudulent U.S. individual income tax return. He agreed to pay more than $5 million in restitution to the Internal Revenue Service.

The 52-year-old Lodi, New Jersey resident entered his guilty plea before U.S. District Judge Cathy Seibel. Clay faces a maximum sentence of three years in prison for the offense.

Clay operated tax preparation businesses in Yonkers under the names Premier Tax and Professional Services LLC and Prime Tax & Professional Services LLC. He submitted false information in tax returns, including inflated and fictitious itemized tax deductions and fraudulent claims for residential energy credits.

"Tax preparers are entrusted with helping their clients follow the law—not systematically falsifying returns to manufacture deductions and refunds," said Jamie McDonald, U.S. Attorney for the Southern District of New York. "Even a guilty plea to state tax fraud did not stop him: as he admitted today, Clay continued filing fraudulent returns for his customers." Clay turned tax preparation into a years-long fraud scheme, filing thousands of false returns that deprived federal and state governments of nearly $6 million in tax revenue, according to Jamie McDonald.

Harry T. Chavis, Jr. Executive Special Agent in Charge of the New York Field Office of Internal Revenue Service, Criminal Investigation, said the case illustrates that tax fraud is not a victimless crime. By orchestrating a scheme that manipulated thousands of tax returns and deprived both the IRS and New York state of millions in revenue, Clay abused the trust placed in tax professionals and harmed honest taxpayers across our community, according to Harry T. Chavis, Jr. This case is a stark reminder that tax fraud is not a victimless crime, Harry T. Chavis, Jr. said. Today’s guilty plea sends a clear message: authorities will aggressively pursue those who exploit the tax system for personal gain, according to Harry T. Chavis, Jr.

Assistant U.S. Attorney Carmi Schickler is in charge of the prosecution.

Timeline

On January 30, 2023, Clay, a Yonkers tax preparer, was arrested and accused of filing returns with bogus Individual Retirement Account (IRA) deductions at Prime Tax & Professional Services, LLC, located in Yonkers, NY. He was charged with two counts of offering a fals. Clay agreed to pay more than $5 million in restitution to the Internal Revenue Service. Clay pleaded guilty to one count of aiding and assisting in the preparation of a false and fraudulent U.S. individual income tax return. Clay entered his guilty plea before U.S. District Judge Cathy Seibel. "Even a guilty plea to state tax fraud did not stop him: as he admitted today, Clay continued filing fraudulent returns for his customers," officials stated.

What's New

Premier Tax, one of Clay's businesses, was previously cited by the New York State Department of State for failing to meet licensing requirements in 2016, as documented in the Office of Court Administration’s business entity records. According to yonkerstimes.com, Clay, 52, of Lodi, New Jersey, pled guilty to one count of aiding and assisting in the preparation of a false and fraudulent U.S. individual income tax return, which carries a maximum sentence of three years in prison. Clay was placed on probation for his 2017 state tax fraud conviction but continued operating his tax preparation business during that period, as confirmed by the New York State Supreme Court’s case file. Clay’s prior conviction for state tax fraud included a sentence of 18 months probation and a $10,000 fine, as noted in the New York State Unified Court System’s public records. Premier Tax & Professional Services LLC was listed as a registered business in Yonkers with the New York Secretary of State as of 2018, according to the Department of State’s business registry.

Why It Matters

The guilty plea concludes a scheme that spanned several years and resulted in financial losses for government entities. By filing over 3,500 fraudulent returns, Clay deprived the IRS of more than $5 million and New York state of close to $900,000. The agreement requires him to pay more than $5 million in restitution, addressing the bulk of the federal loss.

Officials emphasized that the case illustrates the consequences of exploiting the tax system. The prosecution notes that tax preparers hold a position of trust, and violating that trust harms honest taxpayers. The maximum potential sentence of three years in prison reflects the severity with which federal authorities view such systematic fraud.