A mother and son from Lancaster, Texas, were indicted on March 24 for allegedly filing fraudulent tax returns with the Internal Revenue Service, according to United States Attorney for the Northern District of Texas Ryan Raybould.
The indictment alleges that Jessie Badillo, 60, and her son Manuel Badillo, 37, conspired between 2020 and 2024 to submit false tax returns through their businesses JES Financial Service and Manny Financial Services in DeSoto. The charges state that they sought fraudulent refunds by fabricating itemized deductions such as medical and dental expenses or inventing businesses with significant losses.
Jessie Badillo faces one count of conspiracy to defraud the United States, forty counts of aiding and assisting in preparing false tax returns, and two counts of subscribing to her own false tax returns. Manuel Badillo is charged with one count of conspiracy and twenty-five counts of aiding and assisting in preparing false tax returns. If convicted, each could face up to five years in prison for conspiracy charges and up to three years per count on other charges.
“Tax preparers occupy a position of trust in our system. We trust that they will accurately and honestly prepare tax returns. When that trust is violated, through the fictitious creation of deductions and expenses, they don’t just fail their clients, they fail the American people,” said U.S. Attorney Ryan Raybould. “This is theft from the honest American taxpayer. The indicted defendants are alleged to have done that, and we will vigorously prosecute this case and other tax cheats in North Texas.”
Special Agent in Charge Christopher J. Altemus from IRS Criminal Investigation said: “During the filing season, it is especially important that taxpayers are able to trust their return preparers. Jessie and Manuel Badillo allegedly violated that trust in an attempt to line their own pockets. IRS-CI will continue to pursue return preparers who exploit their clients and undermine the tax system.”
IRS Criminal Investigations conducted the investigation while Special Assistant U.S. Attorney Ignacio Perez de la Cruz is prosecuting the case.
Authorities remind readers an indictment represents only allegations; all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
