Royal Palm Beach man to pay $570,000 for filing false tax returns

A Royal Palm Beach man who once operated a tax return business pleaded guilty Friday to filing a false return and preparing and filing a false return for a client, authorities said in a statement.

Gregory J. Salgado Jr., 39, agreed to pay $570,000 in restitution to the United States.

He was charged with filing income tax returns for himself and his clients in which he fraudulently claimed the First-Time Homebuyer Credit and other tax credits and deductions, a U.S. Attorney's Office for the Southern District of Florida spokeswoman said in the statement.

In 2009, while operating a tax return preparation business, Salgado filed returns for clients while falsifying information to support a fake claim that they were entitled to claim credits and deductions.

According to court documents, between Jan. 14 and May 13, 2009, Salgado submitted more than 75 tax returns that included fictitious claims for the first-time homebuyer tax credit.

These claims resulted in a tax loss to the United States of more than $570,000, but less than $1 million.

Salgado faces up to three years in prison. He is scheduled to be sentenced on July 27.