DALLAS, Texas — A mother and son who operated tax preparation businesses in North Texas have been federally indicted for allegedly filing fraudulent tax returns, officials announced.
According to the indictment filed March 24, 2026, Jessie Badillo, 60, and her son Manuel Badillo, 37, both of Lancaster, are accused of conspiring to submit false tax returns to the IRS between 2020 and 2024.
Prosecutors allege the pair operated JES Financial Service and Manny Financial Services in DeSoto, where they prepared and filed returns that sought fraudulent refunds. The indictment states the returns included fabricated itemized deductions, such as medical and dental expenses, and falsely reported 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 related to filing her own false returns. Manuel Badillo faces one count of 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.
“Tax preparers occupy a position of trust in our system. We trust that they will accurately and honestly prepare tax returns,” said U.S. Attorney Ryan Raybould. “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.”
“During the filing season, it is especially important that taxpayers are able to trust their return preparers,” said Christopher J. Altemus, Special Agent in Charge of IRS Criminal Investigation’s Dallas Field Office. “Jessie and Manuel Badillo allegedly violated that trust in an attempt to line their own pockets.”
The case was investigated by IRS Criminal Investigation. Special Assistant U.S. Attorney Ignacio Perez de la Cruz is prosecuting the case.
