$16 Million Later, NJ Tax Preparer Pleads Guilty in Massive Fraud

A tax preparer from South Jersey has admitted to filing false tax returns, which resulted in millions of dollars in losses to the government.

Guilty Plea in $16M Tax Fraud Case

Last week, 55-year-old Michael Sigall of West Berlin pleaded guilty in federal court to two counts of aiding or assisting the preparation of false tax returns.

Scheme Involved Hundreds of Clients Over 6 Years

Federal authorities say from 2018 through 2024, Sigall operated an income tax return preparation business and during that time, he prepared and filed income tax returns for hundreds of clients that contained false statements relating to tax credits for residential energy improvements.

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As a result of those false claims, his clients received inflated refunds to which they would not have been entitled if he had prepared accurate returns.

The false tax returns prepared by Sigall caused a tax loss of more than $16,000,000.

Possible Prison Time and Fines

Each count of aiding or assisting the preparation of false tax returns is punishable by up to three years in prison and a maximum fine of $250,000.

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Sentencing is scheduled for December 2nd.

The government was represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division.