A Long Island tax preparer has pleaded guilty to orchestrating a nearly $12 million tax fraud scheme in which he prepared and filed hundreds of fraudulent tax returns claiming false deductions and credits, according to the Department of Justice.

The defendant allegedly inflated deductions, fabricated business losses, and claimed bogus credits on returns filed for clients, many of whom were unaware their returns contained false information.

The scheme ran for several years and caused approximately $11.8 million in losses to the IRS. The defendant faces up to five years in prison for each count of tax fraud and is expected to pay full restitution.

Credit: IRS Criminal Investigation