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Monday, September 30, 2024

Texas residents plead guilty in $111 million IRS fraud scheme

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Attorney General Merrick B. Garland & Deputy Attorney General Lisa O. Monaco | https://www.justice.gov/agencies/chart/map

A Texas man pleaded guilty on Friday to conspiracy to commit mail and wire fraud and aggravated identity theft, while a Texas woman pleaded guilty yesterday to conspiracy to commit mail and wire fraud. These pleas are part of a broader scheme to defraud the IRS, which has seen seven defendants plead guilty in total, with fraudulent tax refund claims amounting to over $111 million.

According to court documents, from 2018 to 2021, Abraham Yusuff of Round Rock led a stolen-identity-refund-fraud scheme by conspiring with Meghan Inyang of San Antonio, Christopher Eduardo of Round Rock, Christian Mathurin of Nashville, Tennessee, Dillon Anozie of San Antonio, Babajide Ogunbanjo of Austin, and Aydin Mammadov of Houston.

Yusuff recruited co-conspirators to provide addresses for receiving mail, including IRS correspondence such as identity verification letters. The conspirators posed as authorized agents of multiple taxpayers using stolen information related to the taxpayers and their real tax preparers. They persuaded the IRS they were legitimate representatives and directed it to change the addresses on file for the taxpayers. This allowed them access to tax information such as account transcripts and wage records.

The conspirators used this information to electronically file more than 370 tax returns claiming fraudulent refunds. They directed the IRS to split these refunds among several prepaid debit cards. Before issuing some refunds, the IRS sent verification letters to addresses controlled by the conspirators who then instructed the IRS to release the refunds while pretending to be the taxpayers.

Once deposited onto prepaid debit cards, the funds were laundered through purchases like money orders from local stores in amounts designed to avoid identification or reporting requirements. These prepaid debit cards and money orders were used for buying designer clothing, home renovation materials, and used cars at auction. The defendants kept or received money orders purchased with fraudulent refunds as their share of illegal proceeds.

Yusuff pleaded guilty to one count each of conspiracy to commit mail and wire fraud and aggravated identity theft. Inyang pleaded guilty to one count of conspiracy to commit mail and wire fraud.

Mammadov, Ogunbanjo, Eduardo, and Anozie had previously pleaded guilty each to one count of conspiracy to commit mail and wire fraud. Mathurin pleaded guilty earlier this year for aiding in filing a false tax return.

Each defendant faces up to 20 years in prison for conspiracy charges. Yusuff also faces an additional mandatory two-year sentence for aggravated identity theft. Mathurin could face up to three years in prison for aiding in filing a false tax return. Sentences will be determined by a federal district court judge after considering U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced these developments.

The case was investigated by IRS Criminal Investigation and the Treasury Inspector General for Tax Administration. Assistant Chief Michael Boteler along with Trial Attorneys Mary Frances Richardson and Curtis Weidler from the Tax Division are prosecuting this case with assistance from the U.S. Attorney’s Office for the Western District of Texas.

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