A federal grand jury in the District of Puerto Rico returned an indictment charging Gabriel F. Hernández, with ten counts of wire fraud. According to allegations in the indictment, Hernández, a CPA who served as the tax manager and partner-in-charge of the tax division of a large public accounting, tax, consulting and business advisory firm, devised a scheme to defraud the IRS. Under the scheme, as alleged, Hernández unjustly enriched himself and others by receiving fees in exchange for preparing and filing and causing to be prepared and filed a false federal income tax return with the IRS and fraudulent applications and other records related to the acts. The indictment further alleges that, as part of the scheme Hernández and others evaded the assessment and payment of taxes by engaging in financial transactions devoid of any economic substance (sham transactions). The transactions allegedly were intended to create the illusion that Hernandez’s clients earned income from services performed within Puerto Rico, rather than within the mainland United States. If found guilty, the defendant faces a maximum statutory sentence of up to 20 years in prison and a fine up to $250,000 for charges relating to wire fraud.