AUBURN — A local businessman was indicted Wednesday by the U.S. Department of Justice for preparing false tax returns for 17 clients and for himself, according to a Department of Justice news release.

Thierry Musese, 35, former owner of FreshCutz at 62 Spring St., is charged with 31 counts of aiding and assisting preparation of a false tax return, two counts of false statements on a tax return and nine counts of wire fraud.

Each of the first 33 counts comes with penalties of up to three years in prison and fines of up to $250,000. The wire fraud charges each come with penalties of up to 20 years in prison and fines of up to $250,000.

The indictment alleges Musese ran a paid tax preparation business out his Auburn barbershop preparing and filing false tax returns on behalf of 17 clients. The 2021 and 2022 returns allegedly included nonexistent business losses, fuel tax credits and residential energy credits that clients were not entitled to, the release said.

Musese also allegedly falsified personal tax returns during those years and allegedly defrauded some of his clients by diverting some of their tax refunds, without their consent, to himself. He allegedly provided clients with copies of their tax returns differing from versions he filed with the Internal Revenue Service.

Musese is also accused of continuing to prepare false tax returns in 2023 after his electronic filing identification number was revoked by the IRS.

The IRS sent Musese a letter in August 2023 notifying him that his e-filing identification number was revoked and “that he was expelled from participating in IRS e-file,” the indictment said.

“‘Criminal investigation has determined that fraudulent returns have been filed utilizing’ the EFIN for FreshCutz and that Musese’s ‘conduct violates the requirements to participate in and reflects adversely on IRS e-file,’” the indictment said quoting the IRS letter to Musese.

The indictment alleges that in 2024 Musese listed another person’s name, preparer tax identification number and electronic filing identification number on Form 1040 which he prepared and filed electronically. Those forms also included false filing status resulting in clients “erasing any tax liability and claiming tax refunds in amounts greater than what they were entitled.”

A U.S. Magistrate Judge will preside over Musese’s initial court appearance, which has yet to be scheduled.

Prosecutors are trial attorney Likhitha Butchireddygari of the tax division and Assistant U.S. Attorney Daniel Perry.