NEWARK, NJ – Omar Khater, a 33-year-old Essex County tax preparer from Fairfield, New Jersey, is headed to federal prison for 57 months after admitting his role in a brazen $4.4 million scheme to defraud the Internal Revenue Service. U.S. Attorney Philip R. Sellinger announced the sentence today, marking a significant victory in the ongoing battle against tax fraud.
Khater pleaded guilty on January 23, 2024, before U.S. District Judge Brian R. Martinotti, to one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS. His accomplice, Walid Khater, 38, of Arizona, also pleaded guilty on May 23, 2024, to the same charges. The pair worked in concert to exploit a vulnerable system and line their pockets at the expense of American taxpayers.
“Omar Khater admitted his role in an elaborate scheme that used stolen personal identifying information and fabricated tax returns to bilk the IRS of millions of dollars,” stated U.S. Attorney Sellinger. “He and a relative submitted tax documents falsely claiming that the taxpayers listed on those documents had earned certain income or won thousands – and in some cases millions – of dollars in gambling and lottery winnings.”
The scheme was simple in its audacity: steal identities, file false returns claiming massive winnings, and divert the resulting refunds into bank accounts controlled by the Khater brothers and their associates. The fraudulent filings claimed bogus tax withholdings, ensuring the IRS would issue substantial refunds. The U.S. Treasury ultimately issued $4.49 million in fraudulent refunds, all funneled into the criminals’ accounts. Jenifer L. Piovesan, Special Agent in Charge of IRS-Criminal Investigation, Newark Field Office, bluntly stated Khater “used stolen identities to file fraudulent tax returns for illicit personal financial gain” and is now a convicted felon.
Judge Martinotti didn’t just hand down a prison sentence. Khater will also serve three years of supervised release following his incarceration and has been ordered to pay restitution of the full $4.49 million stolen from the U.S. Treasury. The investigation, a joint effort between IRS-Criminal Investigation and FBI-Newark, demonstrates the commitment of federal agencies to pursue and prosecute those who prey on the financial system. Special Agent in Charge James E. Dennehy of FBI-Newark contributed to the successful outcome of this case.
Assistant U.S. Attorneys Fatime Meka Cano of the Economic Crimes Unit and Katherine M. Romano of the Health Care Fraud Unit in Newark spearheaded the prosecution. This case serves as a stark reminder that identity theft and tax fraud are serious federal crimes with severe consequences. The Grimy Times will continue to track this case and report on the sentencing of Walid Khater as it develops.
RELATED: Tax Cheat Sentenced to 57 Months for $4.4M IRS Scam
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Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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