Colorado Tax Preparer Found Guilty on 37 Counts for Fraudulent Returns Causing Over $150,000 in Losses to the US

A 43-year-old Mexican national identified as Nancy Maldonado was found guilty on 37 counts linked to helping prepare fraudulent tax returns for clients. The United States Attorney’s Office for the District of Colorado made the official announcement and also released an official statement.

According to a press release published on the official website, the court documents and evidence presented at the trial showed that Alvarez was the owner and operator of a tax preparation business in Bronx, New York City. Prosecutors claimed that she prepared false tax returns that claimed refunds her clients were not eligible to receive.

Authorities claimed that Alvarez ran the tax fraud scheme by forging business losses. These losses were often tied to businesses that did not exist. She also falsely applied for paid sick and family leave credit, a benefit Congress created during the COVID-19 pandemic. At the same time, many of her clients did not qualify for those benefits.

In addition, she charged preparation fees of up to $2,000 per return, with some clients allegedly unaware of the amounts being charged. Prosecutors said that, as a result, she has caused losses to the United States over $150,000. IRS Criminal Investigation probed the case, and Alvarez is now set to be sentenced in August 2026.

The trial was presided over by the Senior United States District Judge John L. Kane. Meanwhile, the prosecution was handled by Assistant U.S. Attorney Tim Neff for the District of Colorado and Trial Attorney Daniel R. Glenn.

The Justice Department announced the launch of the National Fraud Enforcement Division (Fraud Division) on April 7, 2026. It is a unit dedicated to investigating and prosecuting fraud cases against Americans. The department also supports President Donald Trump’s Task Force to Eliminate Fraud. This is a government-wide initiative led by Vice President JD Vance to combat fraud, waste, and abuse in federal benefit programs.

The DOJ also shared the update on its account. It noted additional arrests, convictions, and prison sentences in fraud cases totalling over $340 million in taxpayer losses.

Assistant Attorney General for the NFED Colin McDonald said that the division was laser-focused on prosecuting anyone committing fraud against Americans.

“Over the past seven days, the Department of Justice has taken enforcement action in fraud schemes totaling over $340 million, with loss or intended loss amounts in individual cases ranging from $54,000 to over $100 million,” further claiming that the authorities were committed to wiping out fraud.

According to the BBC, it was in December 2025 that the Trump administration stopped child care funding for the state of Minnesota after a conservative YouTuber claimed that several daycare centers run by Somali immigrants were receiving public money without providing child care services.

The Department of Health and Human Services announced it was pausing the state’s yearly $185 million funding payment while a complete review of the facilities involved is carried out. HHS Deputy Secretary Jim O’Neill also posted the announcement on X. He said the move came amid “serious allegations” suggesting “the state of Minnesota has funneled millions of taxpayer dollars to fraudulent daycares across Minnesota over the past decade”.