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In the interest of speed and timeliness, this story is fed directly from the Associated Press newswire and may contain spelling or grammatical errors.

San Diego tax preparer pleads guilty to felony charges

Tuesday April 15, 2003

SAN DIEGO (AP) A Chula Vista tax preparer who allegedly failed to state income she made by preparing taxes for others pleaded guilty Tuesday to two felony charges, federal officials said.

Francisca Bray-Lugo, 57, pleaded guilty in U.S. District Court to counts charging her with filing a false income tax return and aiding in the preparation of a false tax return, said U.S. Attorney Carol Lam.

Authorities said Bray-Lugo intentionally filed a false income tax return that omitted more than $24,000 in taxable income she earned as a tax preparer.

Bray-Lugo also prepared a federal tax return for a client claiming more than $14,000 in false deductions, authorities said.

In addition, Bray-Lugo admitted to preparing at least 73 individual income tax returns from 1998 to 2001 that contained materially false information, costing the government $200,000 in lost taxes, Lam said.

Bray-Lugo faces up to six years in prison and a $200,000 fine at her sentencing, which was scheduled for July 22.

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