A mother and son from North Texas who worked as tax return preparers have been federally indicted on charges they filed fraudulent tax returns, authorities said.
According to the indictment unsealed March 24, 2026, Jessie Badillo, 60, and her son, Manuel Badillo, 37, both of Lancaster are accused of conspiring to submit false returns to the Internal Revenue Service between 2020 and 2024.
Prosecutors allege the Badillos operated through their businesses, JES Financial Service and Manny Financial Services in DeSoto, and sought inflated refunds by fabricating itemized deductions, including medical and dental expenses, and creating fictitious businesses with large losses.
Jessie Badillo is charged with conspiracy to defraud the United States, 40 counts of aiding and assisting in the preparation of false tax returns and two counts of filing her own false returns. Manuel Badillo is charged with conspiracy and 25 counts of aiding and assisting in the preparation of false tax returns.
If convicted, each faces up to five years in prison on the conspiracy charge and up to three years for each additional count, according to the U.S. Attorney for the Northern District of Texas, Ryan Raybould.
“Tax preparers occupy a position of trust in our system. We trust that they will accurately and honestly prepare tax returns. When that trust is violated, through the fictitious creation of deductions and expenses, they don’t just fail their clients, they fail the American people,” said U.S. Attorney Ryan Raybould. “This is theft from the honest American taxpayer. The indicted defendants are alleged to have done that, and we will vigorously prosecute this case and other tax cheats in North Texas.”
