Omar Khater, Tax Fraud, New Jersey 2024
A tax preparer from Essex County, New Jersey, has admitted to a brazen scheme to defraud the IRS of over $4.4 million. According to a plea agreement, Omar Khater, 33, of Fairfield, New Jersey, conspired with a relative, Walid Khater, 38, of Arizona, to steal victims’ identities, use them to file false tax returns, and collect fraudulent refunds.
The scheme, which was carried out between 2016 and 2022, involved the Khaters and others using stolen personal identifying information to file false tax returns with the IRS. The documents claimed 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. 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 scheme caused the U.S. Treasury to issue tax refunds totaling $4.49 million, which the Khaters and others diverted to bank accounts they controlled in New Jersey and elsewhere. The Khaters and others used this money for their own gain, leaving the victims to deal with the consequences of their actions.
Omar Khater pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS. He faces a maximum of 20 years in prison for the wire fraud charge and a maximum of five years in prison for the IRS charge. Khater also faces a fine of up to $250,000, or twice the gross loss or gain caused by the offense, whichever is greatest. Sentencing is scheduled for June 12, 2024.
The investigation was led by special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark, and special agents of FBI-Newark, under the direction of Special Agent in Charge James E. Dennehy.
U.S. Attorney Philip R. Sellinger praised the work of the investigators, saying, “This defendant has admitted his role in an elaborate scheme that used stolen personal identifying information and fabricated tax returns to bilk the IRS of millions of dollars. Working with our law enforcement partners, we will root out these illegal and dangerous schemes, and those who perpetrate them can expect the same result as Omar Khater.”
The case is a stark reminder of the importance of protecting one’s personal identifying information. As Tammy Tomlins, Special Agent in Charge of IRS Criminal Investigation, said, “With this year’s filing just around the corner, today’s plea is a stark reminder as to how valuable your personally identifiable information is to criminals and how important it is to safeguard the information.”
Omar Khater, a tax preparer from New Jersey, pleaded guilty to a $4.4 million tax fraud scheme. He faces a maximum of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for June 12, 2024.
Mandatory Facts: Defendant: Omar Khater, 33; Charges: Conspiracy to commit wire fraud and conspiracy to defraud the IRS; City and State: Newark, New Jersey; Exact Date: January 23, 2024; Sentence: Awaiting sentencing on June 12, 2024; Dollar Amounts: $4.4 million; Category: Fraud & Financial Crimes.
Key Facts
- State: New Jersey
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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