Garza, age 79, has been indicted on 18 counts of wire fraud, one count of conspiracy to commit wire fraud, and 22 counts of aiding and assisting in the preparation of fraudulent income tax returns. He allegedly charged clients a percentage of the money they had chosen to shelter.

He allegedly created multiple shell companies to create a circular flow of funds to help clients avoid paying taxes. The indictment alleges the shell companies were supposedly created to provide services to clients’ business or to serve as family investment vehicles.

However, these had no purpose other than to move money, according to the indictment

Garza allegedly utilized sham operating  and service agreements, phony invoices and false private annuity agreements to give the companies an air of legitimacy and conceal the scheme..  

The indictment accuses Garza and other of assisting clients in preparing and preparing Forms 1120 and 1120S, deducting business expenses for services that were never performed, and Forms1065, reporting gross receipts for payments to services companies that were not earned.

They also underreported taxpayer incomes on Forms 1040 and 1040x

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