NEWARK, N.J. – Hector Urena, a resident of the Bronx, New York, confessed in federal court today to his central role in a sprawling scheme to pilfer over $2.7 million from the U.S. Treasury through fraudulent tax refunds. The operation, a classic example of Stolen Identity Refund Fraud (SIRF), preyed on vulnerable individuals, particularly those in Puerto Rico, to enrich Urena and his co-conspirators.
According to court documents and statements made during the proceedings, Urena’s crew systematically obtained Social Security numbers and dates of birth from unsuspecting victims. They then filed bogus 1040 tax returns, fabricating wage and tax information to guarantee a hefty refund. These refunds weren’t directed to the rightful owners, but to addresses controlled by Urena and his associates. The scheme ran from August 2013 through May 2015.
Urena didn’t just receive the stolen funds; he actively facilitated the conversion of the fraudulently obtained Treasury checks into cash. He leveraged a check-cashing business he owned to process the illicit refunds, pocketing the proceeds for himself and his partners. This wasn’t a one-off operation; it was a sustained, calculated effort to defraud the government.
Urena pleaded guilty before U.S. District Judge John Michael Vazquez to one count each of conspiracy to steal government funds, theft of government funds, and aggravated identity theft. The aggravated identity theft charge carries a mandatory consecutive two-year prison sentence, meaning it will be served on top of any other sentence imposed. Conspiracy to steal government funds carries a potential five-year prison term, while theft of government funds could land him up to ten years behind bars. Each of those counts also carries a fine of up to $250,000, or twice the amount of the ill-gotten gains.
The investigation was a collaborative effort between multiple federal agencies, including the IRS-Criminal Investigation, the U.S. Postal Inspection Service, the U.S. Postal Service Office of Inspector General, and the U.S. Secret Service. Acting U.S. Attorney William E. Fitzpatrick highlighted the agencies’ joint work in bringing Urena to justice. Assistant U.S. Attorney Elaine K. Lou is prosecuting the case. Urena was represented by James Kousouros Esq. of New York.
Sentencing is scheduled for January 25, 2018. While Urena has admitted his guilt, the final length of his sentence will depend on a variety of factors considered by Judge Vazquez. However, given the scale of the fraud and the aggravated identity theft charge, a significant prison term is almost certain. This case serves as a stark reminder that identity theft isn’t a victimless crime – it’s a direct assault on the financial security of individuals and the U.S. Treasury.
Related Federal Cases
- Hector Urena, Stolen Identity Refund Fraud, NY 2024 · Puerto Rico
- Hector Urena, Stolen Identity Tax Fraud, Puerto Rico 2023 · Puerto Rico
- Wellington Feliz, IRS Refund Fraud, New Jersey 2023 · Puerto Rico
- Michael Blanc, Wire Fraud, Newark NJ, 2024 · New Hampshire
- Porfirio Paredes, $65M Stolen Identity Income Tax Refund Fraud, New Jersey 2023 · Michigan
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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