Aiello Harris Abate, Law Group PC, Achieves Hung Jury in Federal Tax-Fraud Trial of New Jersey CPA

TRENTON, N.J. — November 2025 — Defense attorneys James A. Abate and Jay J. Freireich of Aiello Harris Abate, Law Group PC have secured a hung-jury mistrial in the federal tax-fraud prosecution of New Jersey Certified Public Accountant Christopher Ward Demba. The case, tried before U.S. District Judge Zahid N. Quraishi in the District of New Jersey, ended after jurors could not reach a unanimous verdict on any count.

Case Background

The U.S. Department of Justice announced in January 2025 that Demba, owner of Demba & Associates CPA LLC in Hillsborough, had been indicted on 55 counts of aiding and assisting in preparing false tax returns and obstructing the Internal Revenue Service.

Following pre-trial motions and evidentiary rulings, prosecutors proceeded to trial on 19 counts involving alleged false entries on client returns from 2018 to 2023.

Assistant U.S. Attorneys Mark McDonald and Alexis Hughes accused Demba of operating a “factory of fraud.” They alleged he invented figures—particularly “prior-year minimum-tax credits” on IRS Form 8801—to reduce client liabilities and later supplied fabricated worksheets to IRS auditors to conceal discrepancies.

The government sought to show that Demba intentionally falsified data to keep clients returning for his services, calling a series of IRS agents and former clients to testify. Dozens of tax returns and internal spreadsheets were admitted into evidence.

Defense: Complex Tax Rules, Not Criminal Intent

Representing Demba, James A. Abate and Jay J. Freireich maintained that the discrepancies stemmed from the complexity of federal tax law, not deliberate fraud. They emphasized that Demba was a licensed CPA with more than 30 years of practice, had cooperated with auditors, and that no evidence showed personal gain.

“Even if some returns contained errors, that does not make them crimes,” said James A. Abate, managing partner of Aiello Harris Abate, Law Group PC. “The government must prove beyond a reasonable doubt that any mistakes were willful and intended to defraud. The jury’s split confirms that intent was never proven.”

“Federal tax law—especially rules governing the Alternative Minimum Tax carry-forward credit—is difficult even for professionals,” added Jay J. Freireich, trial counsel at the firm. “Our client acted in good faith and used accepted accounting methods. The jury recognized the reasonable doubt that existed.”

Under cross-examination, IRS Revenue Agent Thomas Mazur conceded that Form 8801 credits can produce inconsistent calculations even within IRS review systems. Several clients testified that they never discussed those figures and relied on Demba’s professional judgment.

Outcome and Implications

After two days of deliberation, the jury reported it was deadlocked on all counts, and Judge Quraishi declared a mistrial. No conviction was entered, and Mr. Demba remains presumed innocent. Prosecutors have not yet announced whether to seek a retrial or pursue a negotiated resolution.

Legal observers note that the outcome illustrates the difficulty of proving willful criminal intent in complex financial and tax-preparer cases. The court’s emphasis on the requirement that conduct be “willful and knowing” was central to the defense’s success.

“Professionals accused of tax fraud deserve the same presumption of innocence as anyone else,” said James A. Abate. “This verdict reinforces that accounting disagreements and technical misinterpretations cannot automatically be treated as crimes.”

CASE INFORMATION

United States District Court of New Jersey, Trenton
United States of America vs. Christopher Ward Demba
Case No. 3:25-cr-00032-ZNQ-1

Aiello Harris Abate, Law Group PC, is a full-service New Jersey law firm that provides criminal, civil, and administrative defense throughout the state. Its attorneys practice in federal and state courts, representing clients in financial crime, white-collar, and complex litigation matters.

The firm’s Tax Fraud Defense Practice defends individuals and businesses in IRS investigations, audits, and prosecutions involving alleged return-preparer misconduct, false-filing allegations, or willful-failure-to-file cases. With decades of combined courtroom experience, the firm’s attorneys are recognized for strategic preparation, financial expert collaboration, and decisive trial advocacy.

Aiello Harris Abate, Law Group PC
501 Watchung Avenue
Watchung, NJ 07069
(908) 561-5577
[email protected]
https://aielloharris.com
Press Contact : James Abate

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