Omar Khater and Walid Khater, Tax Fraud, New Jersey 2023

A New Jersey tax preparer and an Arizona man have been charged with conspiring to commit wire fraud and defraud the IRS, and for aggravated identity theft.

Omar Khater, 32, of Fairfield, New Jersey, and Walid Khater, 37, of Mesa, Arizona, are each charged by complaint with one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS, and one count of aggravated identity theft.

The Khaters and others worked together and with others to steal victims' identities, which they used to file false tax returns and fraudulently receive tax refunds from the IRS.

They electronically submitted tax documents to the IRS falsely claiming that the individual 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 false filings also claimed tax withholdings on the purported income or gambling winnings that entitled the tax filer to refund payments from the IRS.

According to the U.S. Attorney, the Khaters and others typically submitted these fraudulent tax filings using the names and personal identifying information of victims without the victims' knowledge or permission.

The fraudulent filings caused the IRS to pay $4.49 million in tax refunds, the Khaters and others directed to various bank accounts that they controlled.

Omar Khater is scheduled to make his initial appearance before U.S. Magistrate Judge Andre M. Espinosa in Newark federal court on an undisclosed date.

Walid Khater is expected to appear on January 19, 2023, before a U.S. Magistrate Judge in federal court in Arizona.

The wire fraud conspiracy count is punishable by a maximum of 20 years in prison; the count of conspiracy to defraud the IRS is punishable by a maximum of five years in prison; and each count of aggravated identity theft carries a mandatory sentence of two years in prison, to run consecutively to any term of imprisonment on the underlying felony.

The government is represented by Assistant U.S. Attorneys Fatime M. Cano and Katherine M. Romano.

Both Omar and Walid Khater are presumed innocent unless and until proven guilty.

Source: https://www.justice.gov/usao-nj/pr/new-jersey-tax-preparer-and-arizona-man-charged-conspiracy-defraud-and-identity-theft