Arizona Man Admits to $4.4 Million IRS Scam
Newark, NJ – In a shocking turn of events, 38-year-old Walid Khater of Mesa, Arizona, pleaded guilty to a $4.4 million IRS scam. Khater, along with his co-conspirator Omar Khater, 33, of Fairfield, New Jersey, worked together to steal victims’ identities and file false tax returns, resulting in a massive tax refund of $4.49 million.
According to court documents, the Khaters used stolen personal identifying information to file false tax returns, claiming their victims had earned millions in gambling and lottery winnings. They then directed the illicit refunds to bank accounts they controlled, using a chunk of the money to gamble and filing the winnings as income to get tax refunds.
“Walid Khater has admitted his role in an elaborate scheme that used stolen personal identifying information and fabricated tax returns to fleece the IRS of millions of dollars,” said U.S. Attorney Philip R. Sellinger. “With the help of our law enforcement partners, we will aggressively pursue these illegal and dangerous schemes, and those who perpetrate them will be called to answer for their crimes.”
The Khaters’ scheme was brought to light through a joint investigation by the IRS-Criminal Investigation and the FBI-Newark. “Investigating individuals who use stolen identities to file fraudulent returns for personal gain is a top priority at IRS Criminal Investigation,” said Jenifer L. Piovesan, Special Agent in Charge, IRS Criminal Investigation.
Khater faces a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest, for the charge of conspiracy to commit wire fraud. He also faces a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest, for the charge of conspiracy to defraud the IRS. Sentencing is scheduled for October 9, 2024.
The government is represented by Assistant U.S. Attorneys Fatime Meka Cano of the Economic Crimes Unit and Katherine M. Romano of the Health Care Fraud Unit in Newark.
This case highlights the importance of vigilance in preventing tax-related scams and the consequences of those who attempt to cheat the system.
The investigation was led by special agents of IRS-Criminal Investigation, Newark Field Office, under the direction of Acting Special Agent in Charge Jenifer L. Piovesan, and special agents of FBI-Newark, under the direction of Special Agent in Charge James E. Dennehy.
The NJ Transit Police also assisted in the investigation.
The court documents and statements made in court paint a clear picture of the Khaters’ brazen scheme, which exploited the trust placed in the IRS by honest taxpayers.
As the investigation continues, the public is reminded to remain vigilant and report any suspicious activity to the authorities.
The case is a stark reminder that those who think they can cheat the system will be caught and held accountable.
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Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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