Hector Urena Gets 54 Months for Stolen Identity Tax Fraud

A Bronx man has been slammed with 54 months in federal prison for running a brazen stolen identity refund fraud (SIRF) scheme that bled the U.S. Treasury of more than $2.7 million. Hector Urena, of New York, was sentenced today in Newark federal court after admitting his role in a multiyear conspiracy to file false tax returns using stolen personal data, U.S. Attorney Craig Carpenito announced.

Urena pleaded guilty to one count each of conspiracy to steal government funds, theft of government funds, and aggravated identity theft. U.S. District Judge John Michael Vazquez handed down the 54-month sentence and also imposed three years of supervised release. On top of prison time, Urena was ordered to pay $2.78 million in restitution — the full amount lost by the government.

Stolen Identity Refund Fraud is a widespread scam where criminals use purloined Social Security numbers and birth dates — often from victims in Puerto Rico — to file fake Form 1040s. These fraudulent returns are rigged to trigger refunds. In this case, Urena and his co-conspirators directed refund checks to addresses they controlled, then laundered the cash through a check-cashing business Urena owned.

From August 2013 to May 2015, the operation flooded the IRS with bogus filings. Using forged documents and stolen identities, the ring manipulated the tax system to generate refund checks, which were then converted into cash. The investigation confirmed the fraud caused $2.7 million in actual losses to the Treasury, with the full demand for restitution set at $2.78 million.

The probe was a joint effort by heavyweights in federal law enforcement. IRS-Criminal Investigation, led by Special Agent in Charge Jonathan D. Larsen, spearheaded the case. They were joined by postal inspectors from the U.S. Postal Inspection Service, agents from the U.S. Postal Service Office of Inspector General under Monica Weyler, and investigators from the U.S. Secret Service, directed by Special Agent in Charge Mark McKevitt. Acting Inspector in Charge Joseph W. Cronin also oversaw key aspects of the postal probe.

Assistant U.S. Attorney Elaine K. Lou of the Criminal Division in Newark handled the prosecution. The sentencing marks a significant win in the federal crackdown on SIRF schemes, which continue to plague tax agencies and exploit vulnerable victims whose identities are stolen without their knowledge. Urena now faces years behind bars — and a mountain of debt to repay.