A Raleigh man has been indicted for his alleged role in a tax refund scam that involved filing false claims with the IRS and identity theft.
Christian Rhodes, 32, was arrested and charged with one count of conspiracy to defraud the United States, 17 counts of presenting false claims to the IRS, three counts of wire fraud and two counts of aggravated identity theft, according to U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina.
The indictment alleges that Rhodes and others solicited individuals to prepare their federal tax returns, which contained false information to claim tax refunds that the individuals were not entitled to receive. The tax returns, filed by Rhodes, contained false wages, tax withholdings and deductions.
Rhodes allegedly directed the IRS to deposit refunds electronically into bank accounts in his own name and in the names of third-party taxpayers. He also used stolen identities to file false claims for tax refunds.
If convicted, Rhodes faces a statutory maximum sentence of 10 years in prison for the conspiracy count, five years in prison for each false claims count, 20 years in prison for each wire fraud count, and a maximum fine of $250,000 for each count. He also faces a statutory mandatory minimum sentence of two years in prison for the aggravated identity theft count.
Acting Assistant Attorney General Caroline D. Ciraolo and U.S. Attorney Walker commended the special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Susan Menzer of the U.S. Attorney’s Office for the Eastern District of North Carolina, and Trial Attorneys Lauren Castaldi and Rebecca Perlmutter of the Tax Division, who are prosecuting the case.
An indictment is merely a formal charge by the grand jury. The defendant is presumed innocent unless and until proven guilty in a U.S. District Court.
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Key Facts
- State: North Carolina
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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