Former Tax Official Pleads Guilty to Fraud
A former tax official from Freeport has admitted in federal court to defrauding the U.S. government, specifically a pandemic-related business loan program, out of $12 million. Some of this money was reportedly used to purchase homes, cars, and jewelry in the Caribbean.
Damaris Beltre, aged 58, pleaded guilty to two counts of wire fraud and one count of aiding in the filing of a false tax return before U.S. District Judge Sankett J. Bulsara.
She is set to be sentenced on May 26, with the possibility of facing up to 53 years in prison—though, if the sentences run concurrently, it could be reduced to around nine years, based on estimates from U.S. Attorney Charles P. Kelly.
Beltre also agreed to make $11.6 million in restitution.
During the court proceedings in Central Islip, she acknowledged filing over 800 false tax returns for various individuals and businesses. This deception led to roughly $11 million in refunds that were not owed to clients as well as significant unpaid taxes owed to the IRS.
Additionally, Beltre admitted to collaborating with her ex-husband to submit at least five fraudulent applications for Paycheck Protection Program loans, allegedly securing $1 million in funding. These applications contained inaccurate details regarding employee numbers and salaries.
“I didn’t qualify for these loans,” she told the judge. “I used my share to settle business debts and buy a house and jewelry in the Dominican Republic.”
Beltre is among 47 individuals from Long Island who face charges related to defrauding the Paycheck Protection Program, along with other COVID-19 financial assistance programs, collectively accused of misappropriating over $93 million, as noted in a review by Newsday of the federal lawsuits across various locations.
She has been incarcerated for 10 months at Brooklyn’s Metropolitan Detention Center since her arrest at Kennedy Airport, where officials intervened just before she was about to board a flight to the Dominican Republic. In court, she wore the center’s uniform and briefly made eye contact with two male relatives, although she was not permitted to speak with them.
Following her guilty plea, Joseph Nocera Jr., the U.S. Attorney for the Eastern District of New York, remarked that this case should serve as a warning for those who might view federal assistance programs as opportunities for personal gain. He emphasized that such actions would lead to arrest and prosecution.
According to the indictment, Beltre allocated PPP funds toward various purchases, including $22,500 for a home in the Dominican Republic in June 2020, $16,000 for a Honda CR-V in May 2021, and additional funds for jewelry in subsequent years.
Prosecutors detailed that she managed at least two companies that fraudulently obtained PPP loans: Botanica El Podel de San Miguel and L&D Tax and Multi-Service Corporation. It was also noted that she had connections to another PPP recipient, Apollo Global Implements LLC.
Beltre is said to have prepared false income tax returns from January 2021 to April 2024, leading to fraudulent refunds, for which she charged her clients over $1 million. This figure includes any portion of refunds that were issued.
“Beltre was a shady tax preparer… she hoarded funds meant for people with legitimate needs solely to fill her own pockets,” stated Harry T. Chavis Jr., head of the IRS Criminal Investigation Division’s New York office, after Wednesday’s court session.
Beltre’s attorney, Robert P. LaRusso, remarked in court that she lacks financial resources and does not possess any properties in the U.S. that the federal government could seize to recover the embezzled tax funds or PPP loans.
