Get instant
small business insurance quotes

Home > Professional Liability/Errors & Omissions Insurance > News

Newark tax preparer accused of tax fraud


A Newark, New Jersey, tax preparer was permanently prohibited from preparing tax returns for clients following a civil injunction complaint filed against him by the U.S. Department of Justice, The Star-Ledger reports.

The USDJ accused Luvander Hollaway of falsifying the information regarding individuals' earned income tax credit on their tax returns, the paper reports. On October 16, U.S. District Judge Stanley R. Chesler placed a permanent injunction on Halloway from preparing tax returns.

According to the source, Halloway said in a statement that he ultimately had to submit to the court's decision and couldn't not appeal because he felt bombarded by the government and allegations by clients who allegedly submitted false tax information to him. It's unknown if he had professional liability insurance.

"I never tried to defraud the system," he said last month, the paper reports. "I might make mistakes sometimes, but by no means would I purposefully try to defraud anybody."

The paper reports Seth Heald, a chief representative in the civil trial section for the Justice Department, said in a statement the allegations put forth against Halloway are well-founded and he agrees with the court's decision.

WHY Business Insurance Now?

Learn why thousands of small businesses trust Business Insurance Now as their insurance agency.

Take 15 minutes to see how we can help you protect your business.

  • FREE, no-obligation quotes.
  • Complete one online application to compare multiple quotes.
  • Fast response—typically less than 24 hours on week days.
  • We are a nationwide insurance agency covering 48 states.
  • We work directly with you to evaluate your insurance options.
  • We only work with the top business insurance carriers in the country.
  • Expert, licensed insurance agents to guide you through the process.