A Solano County tax preparer was arrested today on multiple felony counts of mail fraud, and aiding and abetting, according to the Franchise Tax Board (FTB). Eddie Salvacion, 53, self-employed as E. R. Salvacion Tax Service, was arrested without incident by investigators from the FTB. According to investigators, Salvacion solicited clients, promising greater refunds by filing amended returns. Between November 2002 and June 2003, he allegedly prepared 340 false amended tax returns for 250 of his clients claiming false itemized deductions. Salvacion charged a $350 fee for each fraudulent amended return. The average fraudulent refund was $1,130. Salvacion defrauded the FTB out of more than $200,000 before the fraud was discovered.
Each count carries a maximum of three years in state prison. The FTB discovered the fraud scheme during normal processing of the amended returns.
The individual taxpayers are victims of Salvacion's fraud. Daniel Linhardt, assistant United States Attorney, is prosecuting the case. Salvacion's bail is set at $50,000.