When people hire an accountant, especially a certified public accountant (CPA), they expect someone who will help them follow the rules—not break them.

But one New Jersey CPA is now facing prison time after admitting he played a central role in a fraudulent tax shelter scheme aimed at helping wealthy clients dodge their taxes.

Shady Tax Shelters for the Rich

Ofer Gabbay, a CPA based in Paramus, New Jersey, has pleaded guilty to conspiring to defraud the U.S. government by promoting fake tax shelters.

According to what was presented in court, this all took place between 2018 and 2019.

Gabbay worked closely with Jack Fisher, James Sinnott, and their assistant Kate Joy to push something called syndicated conservation easement tax shelters—a strategy that’s supposed to encourage land preservation but, in this case, was exploited to create fake charitable deductions.

In simple terms, they made it look like clients were giving away land for conservation, when really they were just inflating numbers to write off millions they didn’t deserve.

Forged Docs, Fake Returns, and Backdated Checks

Gabbay and his co-conspirators weren’t just nudging the lines of legality—they flat-out forged documents.

They told clients to write backdated checks and sign bogus agreements to make everything look legit on paper.

Then Gabbay would take those documents and prepare phony tax returns, complete with fake charitable deductions, to help his clients cash in.

Some Partners Are Already Behind Bars

This wasn’t a one-man operation. Jack Fisher and James Sinnott have already been sentenced for their roles—25 and 23 years in prison, respectively.

Their assistant, Kate Joy, is still on the run and considered a fugitive.

As for Gabbay, he hasn’t been sentenced yet. He could face up to five years in prison, along with fines, restitution, and supervised release.

The exact punishment will be decided by a federal judge after considering sentencing guidelines and legal factors.

IRS and Justice Department Step In

The case is being led by the IRS Criminal Investigation division, and the prosecution is being handled by Senior Litigation Counsel Richard Rolwing and Trial Attorney Parker Tobin from the Department of Justice’s Tax Division.

Acting Deputy Assistant Attorney General Karen E. Kelly announced the charges, emphasizing the government’s ongoing crackdown on financial fraud—especially when it involves professionals who are supposed to uphold the law.