A 44-year-old New Jersey tax preparer who sought more than $170 million in fraudulent COVID-19-related tax refunds was sentenced to 144 months in prison and 5 years of supervised release before the Honorable William J. Martini, in Newark federal court.
Alicia Iannarelli, of Bergen County, was convicted of wire fraud and conspiracy to commit wire fraud, in connection with her role in a scheme to claim over $170 million in fraudulent COVID-19-related tax refunds from the Internal Revenue Service.
The scheme, which spanned from 2020 to 2022, involved Iannarelli and her co-conspirators submitting false tax returns to the IRS, claiming that businesses and individuals were entitled to refunds for COVID-19-related expenses that they never incurred.
Iannarelli used her tax preparation business to fleece unsuspecting clients out of millions of dollars, all while lining her own pockets with ill-gotten gains. Her brazen scheme was uncovered by investigators from the Department of Justice’s Tax Division and the New Jersey Office of the Attorney General.
The sentencing of Alicia Iannarelli marks a significant victory for law enforcement in their efforts to combat COVID-19-related tax scams. The case serves as a stark reminder of the devastating impact that tax fraud can have on individuals, businesses, and the economy as a whole.
Iannarelli’s 144-month prison sentence is a just punishment for her role in a scheme that caused irreparable harm to countless individuals and businesses. Her conviction and sentencing should serve as a warning to others who would seek to profit from COVID-19-related tax scams.
The case is a result of an investigation by the U.S. Department of Justice’s Tax Division and the New Jersey Office of the Attorney General, with assistance from the Internal Revenue Service’s Criminal Investigation Division.
Related Federal Cases
- Irina Sadovsky Convicted for Health Care Fraud and Black-Market Prescription Drug Diversion Scheme, Calabasas CA, 2022 · Alaska
- Karen Sarkisyan Pleads Guilty to $3.1M Medicare Fraud Scheme, Glendale CA, 2026 · Alaska
- Christopher Guilford, Tax Refund Scheme, Sacramento CA, 2025 · California
- Amy Evangelista Sentenced to 18 Months for Tax Fraud Scheme, Lathro… · California
- Earl Worthy, Tax Refund Scheme, AK 2016 · Alaska
Key Facts
- State: Alaska
- Agency: DOJ USAO
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: Official Source â†â€â€ÂÂ
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