In a shocking case of fraud, a well-known accountant in Washington, D.C. has pleaded guilty to serious crimes involving mortgage fraud and tax evasion. Timothy Trifilo, a certified public accountant (CPA) who once worked for large finance and tax firms, admitted in court that he lied on a mortgage loan application and failed to pay taxes over a period of ten years. Trifilo’s actions have not only caused him legal trouble, but they also affected the public trust in professionals who handle sensitive financial matters.
The Fraudulent Loan Application
Timothy Trifilo’s journey into crime began when he tried to buy a new home in Washington, D.C. In February 2023, he applied for a $1.36 million mortgage loan from a bank. The bank, like many financial institutions, required proof of income in the form of tax returns before approving the loan. Trifilo, however, had not filed his tax returns for the past ten years.
Knowing that the bank would not approve the loan without tax return documents, Trifilo decided to create fake documents. He submitted fabricated tax returns for 2020 and 2021, making it appear as if he had filed them with the IRS, even though they had never been filed. These fake documents listed a former colleague as the person who prepared the returns, although this colleague had never been involved in preparing Trifilo’s tax filings. Trifilo’s actions led to the bank approving his mortgage loan, and he was able to purchase the home he desired.
A Long History of Tax Evasion
But the mortgage fraud was not the only crime Timothy Trifilo committed. For over a decade, Trifilo did not file his federal income tax returns, despite earning more than $7.7 million during that time. By failing to pay his taxes, Trifilo caused a significant loss to the IRS, amounting to over $2 million.
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As a tax professional, Trifilo was well aware of the importance of filing tax returns and paying the taxes owed. He had worked with various tax and accounting firms and had been a managing director at a well-known tax firm. Despite his expertise in tax matters, he chose not to follow the law, and instead, he avoided his responsibilities. His actions were in stark contrast to the ethical standards expected of accountants and financial experts.
The Legal Consequences
Trifilo’s guilty plea on both charges means that he has admitted to breaking the law. He now faces serious consequences. The charge of making a false statement on a loan application carries a maximum penalty of 30 years in prison, while the charge of failing to file a tax return could lead to a maximum penalty of one year in prison. In addition to prison time, Trifilo may face other penalties, including supervised release, fines, and the requirement to pay restitution to the IRS for the money he owes.
The case was investigated by IRS Criminal Investigation, the branch of the IRS responsible for investigating financial crimes like tax evasion and fraud. Prosecutors from the U.S. Department of Justice’s Tax Division are handling the case, and they are working to ensure that justice is served. A federal district court judge will determine the exact sentence after considering the law and other factors.
This case is a reminder that even professionals in the finance and tax industries can fall victim to greed and dishonest behavior. Trifilo’s actions not only broke the law but also undermined the trust that the public places in those who handle financial matters. The legal proceedings are still ongoing, but the guilty plea has already shown the seriousness of his crimes.
