ROCHESTER, MN – Mercedes Maldonado Rodriguez, a Rochester-based tax preparer, is facing federal charges after a grand jury indictment revealed a complex scheme to defraud the U.S. government, authorities announced today. The indictment alleges Rodriguez operated a fraudulent tax preparation business from 2008 through April 2013, systematically exploiting the tax system for personal gain.
The scheme, according to prosecutors, centered around the acquisition of legitimate birth certificates belonging to Mexican nationals. Rodriguez and her co-conspirators allegedly used these documents, alongside other falsified paperwork, to illegally obtain Individual Taxpayer Identification Numbers (ITINs) from the Internal Revenue Service. ITINs are issued to those ineligible for Social Security numbers, and in this case, were used to create a pipeline for fraudulent refund claims.
The indictment details how Rodriguez and her network filed false tax returns, claiming refunds based on fabricated dependents and bogus child tax credits. The stolen ITINs were the key to unlocking these fraudulent payments, which were then directed to addresses linked to Rodriguez, her employees, family members, and co-conspirators. These checks were subsequently cashed, funneling stolen funds into the pockets of those involved.
Federal investigators from multiple agencies – including IRS Criminal Investigation, the U.S. Postal Inspection Service, Homeland Security Investigations, the FBI, the U.S. Secret Service, and the Treasury’s Office of Inspector General – painstakingly built the case against Rodriguez. The investigation revealed a pattern of deliberate and calculated fraud, designed to systematically exploit the American tax system.
If convicted on all counts, MERCEDES MALDONADO RODRIGUEZ faces a potential ten-year prison sentence for the conspiracy charge. Each count of theft of public money also carries a maximum ten-year sentence. Adding to that, the indictment includes 33 counts of aggravated identity theft, each carrying a mandatory two-year prison sentence, to be served consecutively. Beyond imprisonment, Rodriguez faces substantial monetary penalties and will be ordered to repay the full amount of the stolen funds.
Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Gregory G. Brooker for the District of Minnesota jointly announced the indictment. Assistant U.S. Attorney Allen A. Slaughter and Trial Attorney Christopher S. Strauss of the Tax Division are prosecuting the case. The case serves as a stark reminder that those who attempt to defraud the U.S. government will be held accountable.
Related Federal Cases
- Mark Arlin Hammerschmidt, Tax Refund Fraud, MN 2024 · Minnesota
- Diallo Dotson, Tax Return Fraud Conspiracy, MI 2024 · Michigan
- Julius Lee Boston, Tax Return Fraud, Minnesota 2012 · Minnesota
- Akintunde Campbell Fatal Police Encounter, Rochester NY, 2025 · Minnesota
- Akintunde Campbell Use of Force Against Police, Rochester NY, 2025 · Minnesota
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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