Los Angeles – The owner of B.A. Income Tax, located in Santa Paula, made his initial appearance in United States District Court yesterday afternoon to answer charges that he aided and assisted in the preparation of false tax returns, willfully failed to file tax returns, and committed wire fraud with respect to mortgage loans.

Benjamin Aparicio, of Fillmore, was charged in a 17-count indictment obtained by prosecutors earlier this month. The indictment alleges that Aparicio aided and assisted in the preparation of thirteen fraudulent returns for the 2003 tax year.

Aparicio is alleged to have claimed losses on five individual income tax returns stemming from a limited liability company that his clients were not entitled to deduct. The indictment also alleges that Aparicio aided and assisted in the preparation of three individual income tax returns upon which he claimed Schedule A deductions that his clients were not entitled.

Aparicio is also alleged to have aided and assisted in the preparation of false partnership income tax returns on five occasions. These partnership income tax returns claimed income and deductions that Aparicio knew the businesses were not entitled to claim.

Additionally, the indictment alleges that Aparicio failed to file income tax returns for Road of Blue Birds LLC, of Santa Paula, a partnership he operated for the years 2003 and 2004.

In addition to the tax-related crimes, Aparicio has been charged with two counts of wire fraud. The indictment alleges that, in 2006, Aparicio prepared a false reference letter for a mortgage borrower that was submitted to a lender as a part of the borrower’s loan application. The reference letter Aparicio prepared allegedly stated that he had prepared tax returns for the borrower and that the borrower’s business generated positive income, when in fact neither claim was true.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.

At the conclusion of Thursday’s hearing, Aparicio was released on bond. As a condition of his release, United States Magistrate Judge Suzanne H. Segal ordered Aparicio not to work in the tax preparation field while this action is pending. Aparicio is scheduled to be arraigned on the charges specified in the indictment and enter a plea on Monday, May 3, 2010.

If convicted of all of the charges contained in the indictment, Aparicio faces a statutory maximum 81 years in federal prison and fines totaling $1,850,000.

The investigation and prosecution of Aparicio was conducted by IRS - Criminal Investigation and the Federal Bureau of Investigation in conjunction with the Tax Division of the United States Attorney’s Office in Los Angeles.