South Portland Man Receives Two Years in Prison for Preparing False Tax Returns

Lawrence Okeyo, 48, of South Portland, Maine, was sentenced to two years in prison followed by one year of supervised release for preparing false tax returns, the U.S. Department of Justice announced on May 7, 2026.

The sentence applies to a single individual convicted of federal tax offenses. Okeyo prepared and filed returns that falsely claimed credits and deductions for multiple taxpayers, though the exact number of returns and total loss amount were not detailed in the department's release.

Federal sentencing guidelines required the court to impose incarceration based on the volume and intent of the false filings.

The prior state allowed Okeyo to remain free pending sentencing. The new state requires him to begin serving the two-year prison term immediately, after which the one-year supervised release period starts. During supervised release he must comply with standard conditions that prohibit preparation of federal tax returns for others.

Downstream, the Bureau of Prisons must designate a facility and intake Okeyo within weeks under standard procedures. The Internal Revenue Service can now pursue civil recovery of any unpaid taxes, penalties and interest tied to the false returns. The conviction also triggers automatic disbarment from IRS practice before the agency under Circular 230 rules, and any co-conspirators or affected taxpayers identified during the investigation must now file corrected returns or face their own audits.

Courts in the District of Maine will docket the judgment, making the full factual basis available for any parallel civil actions.

This marks the latest enforcement action by the Justice Department and IRS against tax-return preparers in the District of Maine. The department has pursued similar cases in recent years targeting individuals who inflate refunds through fabricated Schedule C businesses or education credits.

The original charges against Okeyo were brought under statutes that criminalize aiding and assisting in the preparation of false returns.