Tax Scam Rocks New Jersey as Two Men Charged with Filing False Tax Returns
NEWARK, N.J. – Two East Orange, New Jersey, men are charged with filing false federal income tax returns on behalf of inmates at the Essex County Correctional Facility in order to fraudulently obtain income tax refunds that were used to pay for bail, lawyers, and other expenses, U.S. Attorney Paul J. Fishman announced.
Reginald Eaford, 45, and Winfred Moses, 48, are each charged by complaint with one count of conspiracy to defraud the United States and one count of aggravated identity theft. Both defendants are currently in custody.
Moses will appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor. Eaford will appear on a date yet to be determined.
According to the complaint, Eaford was an inmate at the Essex County Jail from approximately May 20, 2013 through Feb. 12, 2014. Law enforcement became aware that during his incarceration, Eaford deposited unusually large amounts of money into his inmate account.
Through a review of the recorded telephone calls and records maintained by the Essex County Jail, law enforcement officers learned that Eaford, Moses, and others conspired to obtain social security numbers, dates of birth, and other information from inmates at the Essex County Jail. Eaford and Moses would then generate false W-2 forms indicating that the inmates had earned income during the relevant tax year and that federal income tax had been withheld from their paychecks.
The charges against Reginald Eaford and Winfred Moses carry a maximum potential sentence of five years in prison for the conspiracy charge. The aggravated identity theft charges carry a mandatory sentence of two years in prison that must be served consecutively to the punishment imposed on the conspiracy charge. For the conspiracy charge, the maximum potential sentence is five years. For the aggravated identity theft charge, the mandatory sentence is two years.
Reginald Eaford, 45, is currently in custody. Winfred Moses, 48, will appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor.
From Jan. 28, 2014 to April 22, 2014, 60 tax returns were filed in the same manner using an IP address registered at Moses’s residence, for a total of $368,557 in fraudulently-obtained tax refunds. The majority of those fraudulent tax returns were for current or former inmates of the Essex County Jail. Of the 60 tax returns, 24 listed Moses’s residence as the taxpayer’s address and 59 of the 60 tax returns contained W-2 forms that did not match IRS records.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark. The investigation leading to the charges was conducted by special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, postal inspectors from the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge J.R. Ball, and the Internal Affairs Division of Essex County Jail, under the leadership of Warden Roy Hendricks.
Related Federal Cases
- Reginald Eaford, Tax Fraud, New Jersey 2017 · Pennsylvania
- Gomidas Garabed Hartounian, Wire Fraud and Tax Evasion, New Jersey 2014 · Florida
- Doreen A. Gentile, Mail Fraud and Filing a False Income Tax Return, New Jersey 2009 · Pennsylvania
- Patrick Giblin, Telephone Dating Service Scam, New Jersey 2024 · New Hampshire
- Charles Bangle, Tax Evasion, New Jersey 2024 · Pennsylvania
Key Facts
- State: New Jersey
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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