Arthur Bakunts, 40, of Canoga Park, is headed to federal prison for 52 months after being sentenced in Los Angeles for his role in a sprawling stolen-identity tax refund fraud scheme. The grim fallout of his crimes—totaling $741,259 in losses—rippled across California and federal tax systems, leaving hundreds of victims scrambling to reclaim their financial lives.
Bakunts pleaded guilty in November to one count of wire fraud and one count of illegally possessing the means of identification of another person. U.S. District Judge Dale S. Fischer handed down the sentence, which also includes three years of supervised release and a restitution order of $741,259—$612,259 owed to the U.S. Treasury and $129,000 to the state of California.
The scheme began unraveling in 2014 when Bakunts was stopped at a sobriety checkpoint in Glendale. Inside his car, officers discovered identity profiles, counterfeit tax refund checks, and other tools of the trade used in large-scale identity theft. What looked like a routine DUI stop turned into a federal investigation that exposed a criminal pipeline of stolen data and fraudulent filings.
Investigators traced the operation to Ashrf Mohammed Aly, former owner of Speedy Tax Service in West Covina, who used the stolen identities to prepare false federal and state tax returns. Bakunts filed the returns, cashing in on refunds generated by ghosts—fake filings in the names of real people who had no idea they were victims until their credit was shredded and their accounts compromised.
Bakunts admitted to filing approximately 341 fraudulent returns. Prosecutors emphasized the deep human toll: victims faced ruined credit, phantom debts, and months spent untangling bureaucratic nightmares. “The anxiety and sense of violation that identity theft causes” was not just collateral damage—it was baked into the crime.
During his supervised release, Bakunts must perform 20 hours of community service weekly unless gainfully employed. Meanwhile, co-conspirator Aly, who pleaded guilty to wire fraud in December, awaits sentencing by Judge Fischer on April 9. The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Ranee A. Katzenstein, Chief of the Major Frauds Section.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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