Shoreview tax preparer guilty of nine felony tax crimes

ST. PAUL, Minn. – The Minnesota Department of Revenue announced that a Ramsey County District Court jury found Olufemi Augustine Badejo guilty of four felony counts of filing a false income tax return, four felony counts of knowingly preparing tax returns that were fraudulent or false, and one felony count of filing a false property tax refund claim. According to public Minnesota Judicial Branch records, Mr. Badejo, of Shoreview, is scheduled to be sentenced in November 2020.

Mr. Badejo was charged with nine tax-related felonies in March 2019. According to the complaint filed in March 2019, as amended in August 2020, Mr. Badejo operated a tax preparation business, New Horizon Investments, where he knowingly placed false information such as fraudulent business expenses and fake charitable contributions on his clients’ tax returns in order to reduce their taxable income and increase their refunds. Mr. Badejo also filed false income tax returns from 2014 through 2017 that failed to accurately state his taxable income and filed a false property tax refund claim in 2016.  Through his actions, Mr. Badejo allegedly defrauded the state of over $214,000, and allegedly owes over $18,000 in tax, penalties, and interest.  

Each tax-related felony charge carries a maximum penalty of five years in prison, a $10,000 fine, or both.

While the department does not license tax preparers, Minnesota law requires tax preparers to provide honest and competent service to their customers.  The majority of tax preparers provide honest service and sound advice. When a tax preparer does not comply with Minnesota law they may be subject to monetary penalties, criminal prosecution, and being barred from preparing tax returns. Taxpayers can report unprofessional conduct through the department's website or by calling 651-296-3781.

More information on choosing a preparer is available on our website or by searching for “tax preparer” in the Search box of our home page. 

Before you hire a preparer, take the time to ask the following questions. Qualified tax professionals should be able to provide you with complete answers to each of the questions below:

• What kind of formal tax training do you have?
• Do you hold any professional licenses or designations, such as certified public accountant (CPA), enrolled agent (EA), registered accounting practitioner (RAP), accredited tax advisor (ATA), or accredited tax preparer (ATP)?
• Do you belong to any professional organizations?
• Do you take continuing professional education classes each year?
• How long have you been preparing tax returns?
• Have you ever filed a tax return that was similar to my situation?
• Can I contact you all year long, or just during filing season?
• Have you ever been disciplined by any regulatory organization or governmental oversight authority for your tax preparation practices?
• Will you represent me if I’m audited by the IRS or the Minnesota Department of Revenue?
• How much do you charge and how do you calculate your fees? 

Other things to consider

• Be careful of tax preparers who claim to know “the secrets” of obtaining unusually large refunds.
• Be cautious if someone charges fees based on a percentage of your refund.
• Never sign a blank tax form—even for your preparer.

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