PARAMUS, N.J. — A certified public accountant from Paramus pleaded guilty Monday to conspiring to defraud the United States by promoting fraudulent tax shelters that allowed wealthy clients to claim inflated deductions.
Ofer Gabbay, a New Jersey CPA, admitted in federal court to participating in a conspiracy between 2018 and 2019 that involved marketing syndicated conservation easement tax shelters. According to court documents, Gabbay worked with Jack Fisher, James Sinnott, and their assistant Kate Joy to create the scheme, which enabled clients to file false tax returns using backdated documents and inflated valuations.
The conservation easement strategy falsely claimed charitable deductions by overvaluing land donations. Prosecutors said Gabbay helped clients prepare backdated checks, agreements, and supporting documents to substantiate the deductions, and then filed tax returns reflecting the false claims.
Fisher and Sinnott were previously sentenced to 25 and 23 years in prison, respectively. Joy remains a fugitive.
Gabbay faces up to five years in prison and could also receive supervised release, restitution, and financial penalties. Sentencing will be determined by a federal judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
Federal officials continue crackdown on fraudulent tax shelters
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division announced the plea agreement, highlighting ongoing enforcement efforts against fraudulent tax shelter promotions.
The IRS Criminal Investigation division is leading the investigation into the case, which remains active.
Federal authorities said the scheme targeted high-income taxpayers across the country, allowing them to improperly reduce their tax liabilities through the use of falsified conservation easement donations.
Sentencing for Gabbay has not yet been scheduled by the court.
