Las Vegas, Nevada - The Department of Justice filed a civil lawsuit today in the U.S. District Court for the District of Nevada to stop Bill Sunga Modina, who allegedly does business as 5M Financial and 6M Financial, from preparing federal tax returns. According to the complaint, Modina has prepared over 2,200 tax returns since 1992.
The complaint alleges that Modina understates his customers' federal tax liabilities by reporting false or inflated employee business expenses and inflated or fabricated charitable contributions. In addition, the complaint alleges that Modina has failed to provide his preparer identifying number on tax returns he prepared, thereby obscuring his identity as the tax return preparer. According to the complaint, Modina’s activities have resulted in an estimated average tax loss of over $4,400 per return, and the total tax loss could allegedly be as high as $9,680,000 due to Modina’s false and fraudulent return preparation.