A man from South Carolina, currently living in Brazil, has admitted guilt in a federal court in San Francisco for his involvement in a scheme to file a false tax claim.
Court documents reveal that Robert Xan Paul, 45, residing in Sao Paulo, Brazil, collaborated with others to deceive the United States by filing a fraudulent income tax return. This return sought a refund of nearly $600,000, which was subsequently paid by the IRS. Paul was associated with O.I.D. Process, a business run by his co-conspirators that assisted individuals in preparing and filing federal income tax returns with fictitious Original Issue Discount interest income and federal tax withholdings.
To substantiate his refund claim, Paul fabricated IRS forms from financial institutions where he held accounts. These forms falsely reported that the institutions had withheld federal income tax on his behalf.
Paul's actions resulted in a tax loss of $595,110 to the IRS.
He pleaded guilty to one count of conspiracy to submit false claims and is scheduled for sentencing on January 21, 2025. He faces up to 10 years in prison along with supervised release, restitution, and monetary penalties. A federal district court judge will determine the sentence after considering U.S. Sentencing Guidelines and other statutory factors.
The announcement was made by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and First Assistant U.S. Attorney Patrick D. Robbins for the Northern District of California.
The case is being investigated by IRS Criminal Investigation.
Trial Attorney J. Parker Gochenour of the Tax Division and Assistant U.S. Attorney Michael Pitman for the Northern District of California are prosecuting the case.