Brooklyn Man Gets Probation in $38M Tax Fraud Scheme

ERIE, Pa. – Xerxes Shevar, 57, of Brooklyn, New York, walked away with three years of probation and a $290,000 restitution order after pleading guilty to wire fraud conspiracy, Acting United States Attorney Troy Rivetti announced today. The sentence, handed down by United States District Judge Susan Paradise Baxter on July 10, 2025, barely scratches the surface of a brazen, international scheme that attempted to siphon off over $38 million from the U.S. Treasury.

Shevar wasn’t acting alone. The court heard evidence detailing a sprawling conspiracy involving co-defendants operating in the United States, Ghana, Nigeria, and Ireland. The group systematically stole identities, then used those stolen personas to file fraudulent federal tax returns. The goal: a massive payout in ill-gotten refunds.

The scheme involved opening approximately 3,493 bank accounts under false pretenses, impacting around 443 financial institutions. They didn’t stop at bank accounts; the conspirators also racked up 4,563 credit cards using the stolen identities, victimizing an estimated 11,468 individuals. The IRS ultimately paid out at least $10 million in fraudulent refunds before the scheme was uncovered.

Federal investigators traced the flow of stolen information, discovering the conspirators traded identities via email and other communication channels. Shevar was apprehended in February 2024 upon his return to the United States from Ghana, bringing a key piece of the puzzle into focus. The indictment alleges the fraudulent activity spanned from the tax years 2010 to 2013.

Assistant United States Attorney Christian A. Trabold spearheaded the prosecution, building a case that exposed the scope of the operation. While Shevar received probation, the investigation served as a stark reminder of the ongoing threat posed by international identity theft rings and their relentless pursuit of financial gain.

Acting United States Attorney Rivetti praised the dedicated work of the Federal Bureau of Investigation and the Internal Revenue Service–Criminal Investigation, stating their collaborative efforts were critical to securing Shevar’s conviction. This case underscores the importance of continued vigilance in protecting taxpayer dollars and the identities of American citizens from increasingly sophisticated criminal enterprises.

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