Netherlands Man Jailed in $605K IRS Scam

Federico Avendano, 53, of the Netherlands, is headed to federal prison for 48 months after being convicted of aggravated identity theft in a brazen IRS scam that netted over $600,000 in stolen refunds. The sentence, handed down by South Bend District Court Judge Jon E. DeGuilio, marks the end of a years-long federal investigation into fraudulent tax filings tied to stolen taxpayer identification numbers.

Avendano was ordered to pay restitution totaling $605,468.81 — the full sum he fraudulently claimed from the Internal Revenue Service. Court documents reveal he used another person’s taxpayer identification number to file false returns in April and September of 2011, fabricating employment records and claiming refunds that were funneled into bank accounts under his control.

The scheme was made possible through his prior role as a tax preparer in South Bend, where he gained unauthorized access to Individual Taxpayer Identification Numbers (ITINs). He exploited that access, submitting returns without the victims’ knowledge, all while living abroad — a detail that complicated federal efforts to track and apprehend him.

Internal Revenue Service Criminal Investigation Division agents led the probe, tracing electronic filings, bank movements, and employment falsehoods back to Avendano. The digital paper trail, combined with employment records and financial forensics, built airtight evidence that sealed his conviction in federal court.

Assistant United States Attorney Jesse Barrett prosecuted the case, emphasizing the seriousness of abusing public trust in tax preparation roles. ‘When someone in a position of financial responsibility weaponizes personal data for profit, they don’t just steal money — they erode the entire system,’ Barrett said in a statement following sentencing.

Avendano’s 48-month sentence underscores federal crackdowns on transnational tax fraud, especially cases involving professionals who betray client trust. With restitution looming and prison time confirmed, his gamble on stolen identities has ended in a costly fall from grace.

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