DC Accountant Charged with Mortgage Fraud and Tax Crimes

A federal grand jury in Washington, D.C., returned an indictment yesterday, which was unsealed today, charging a CPA with not filing income tax returns, bank fraud and aggravated identity theft.

According to the indictment, Timothy Trifilo, of Washington, D.C., was a partner or managing director at several large accounting and finance firms and worked in tax compliance. Nevertheless, Trifilo allegedly did not file federal income tax returns for himself for nearly a decade despite earning more than $7.7 million during that time.

In February 2023, Trifilo allegedly sought to obtain a $1.36 million bank-financed loan to purchase a home in D.C. and was working with a mortgage company to do so. After the mortgage company allegedly told Trifilo that the bank would not approve the loan without copies of Trifilo's filed tax returns, Trifilo allegedly provided the mortgage company with fabricated documents to make it appear as if he had filed tax returns and provided copies of tax returns for 2020 and 2021 that Trifilo never filed with the IRS. On these returns and other documents that he submitted to the mortgage company, Trifilo allegedly listed a former colleague as the individual who prepared the returns and uploaded them for filing with the IRS. This individual allegedly did not prepare the returns, has never prepared tax returns for Trifilo and did not authorize Trifilo to use his name on the returns and other documents that Trifilo submitted to the mortgage company. Based on Trifilo's false representation, the bank allegedly approved the loan and Trifilo purchased the home.

If convicted, he faces a maximum sentence of two years in prison on the identity theft charge, a maximum sentence of 30 years in prison on the bank fraud charge, and a maximum sentence of one year in prison on each count of failure to file tax returns. Trifilo also faces a period of supervised release, monetary penalties and restitution. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department's Tax Division made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorneys Melissa S. Siskind and Alexandra K. Fleszar of the Tax Division are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.