Holtz Group Operators Pleaded Guilty to Tax Fraud
Three individuals admitted to falsifying tax returns to generate millions in fraudulent refunds and illicit fees.
Updated on Oct. 14, 2026 in Financial Crime
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Steven Holtz, Israel Pellot, and Alton Scott have pled guilty to tax fraud charges involving their tax preparation firm, the Holtz Group. The defendants admitted to falsifying federal income tax returns to reduce client liabilities and collect large fees.
Why it matters
The scheme aimed to generate substantial refunds for clients while the defendants profited from fees tied to the fraudulent savings. Their actions resulted in millions of dollars in restitution agreements as part of the legal proceedings.
Steven Holtz pled guilty to conspiracy to defraud the United States and aiding in the preparation of a false tax return, while Israel Pellot and Alton Scott pled guilty to one count of aiding and assisting in a false return. All three will be sentenced by United States District Judge Mary Kay Vyskocil.
The players
Steven Holtz
He was the primary operator of the Holtz Group and faced charges related to conspiracy and aiding in the preparation of false tax returns.
Mary Kay Vyskocil
She serves as the United States District Judge overseeing the sentencing proceedings for the defendants in the Southern District of New York.
Israel Pellot
He was an operator at the Holtz Group residing in Ormond Beach, Florida, who pled guilty to aiding in the preparation of false returns.
Alton Scott
He was an operator at the Holtz Group residing in Brooklyn, New York, who pled guilty to aiding in the preparation of false returns.
The details
From 2014 through 2025, the group included fictitious business expenses, capital losses, and charitable contributions on client returns to lower tax burdens. Holtz trained employees to urge clients to create shell business entities specifically to claim these fraudulent deductions.
Timeline
The fraudulent tax scheme was executed from 2014 through 2025.
Alton Scott entered his guilty plea on Friday, October 2, 2026.
Steven Holtz and Israel Pellot entered their guilty pleas on Monday, October 5, 2026.
Legal Context
These guilty pleas highlight federal efforts to combat systemic tax preparation fraud that circumvents the Internal Revenue Code's provisions. The case reflects a broader trend of federal prosecutors in the Southern District of New York pursuing individuals who profit from sophisticated, multi-year tax evasion schemes.
Residents in New York City and beyond should ensure their tax filings are prepared by verified professionals, as fraudulent returns can lead to personal liability for the taxpayer. The case serves as a warning about the risks of utilizing tax preparers who promise unrealistic savings or recommend unnecessary business entity creation.
The takeaway
Taxpayers should be wary of preparers who prioritize large refunds over accuracy and encourage the formation of unnecessary business entities. Always verify that your tax professional is using legitimate deductions based on actual expenses.
Further reading
For additional context on local enforcement actions, see our guide on Financial Crime.
Source note: This article includes information reported by The United States Department of Justice.
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