Florida tax fraud case advances after guilty plea over false refund claims

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Florida tax fraud guilty plea

Highlights

McDonald Preval pleads guilty to filing a false tax return tied to multiple fraudulent trust returns seeking over $4.2 million in refunds.
Preval omitted employment income from 2023 tax returns and faces up to three years in prison, sentencing set for Oct. 6.
DOJ's National Fraud Enforcement Division, launched April 7, prioritizes fraud investigations supporting broader federal anti-fraud initiatives.

Court filings outline refund scheme

As reported by the U.S. Department of Justice, McDonald Preval pleads guilty to one count of filing a false tax return connected to returns submitted for a trust he controlled.

According to court documents and statements made in court, Preval, of Miami, files numerous false tax returns on behalf of himself and purported trusts he controls. Those trust returns report significant income and tax withholding payments to the IRS, claims that prosecutors say would have entitled the trusts to large refunds, although the trusts did not earn the stated income or make the claimed payments.

Prosecutors also say Preval files 2023 tax returns that do not include income from his employment. The false returns filed for himself and the purported trusts collectively seek more than $4.2 million in tax refunds.

Sentencing schedule and enforcement focus

Preval is scheduled to be sentenced on Oct. 6 and faces a maximum penalty of three years in prison. He also faces supervised release, restitution and monetary penalties, while a federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The announcement is made by Assistant Attorney General Colin McDonald of the Justice Department's National Fraud Enforcement Division and U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. IRS Criminal Investigation is investigating the case, and Trial Attorneys Melissa Siskind and Kavitha Bondada of the Justice Department's Criminal Division, Tax Section, are prosecuting it.

The department says its National Fraud Enforcement Division, announced on April 7, is focused on investigating and prosecuting fraud against the public. It adds that the effort supports the Trump administration's broader task force aimed at reducing fraud, waste and abuse in federal benefit programs.

Our earlier article on the Florida federal judge’s decision to void Donald Trump’s IRS settlement explained how the ruling reopened legal disputes over the validity of the agreement. We noted that the move could increase uncertainty around Trump’s tax obligations and deepen scrutiny of IRS settlement practices, with potential spillover into broader financial and legal exposure.

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