Richard Lara, Identity Theft, Rhode Island 2012

Two Providence men were sentenced to federal prison for their involvement in a massive identity theft scheme that resulted in millions of dollars in fraudulent tax returns.

Richard Lara, 23, of Providence, R.I., was sentenced to 60 months in federal prison on Thursday for his role in a scheme in which personal identifying information of more than 1,200 individuals was stolen, many of which were used to file fraudulent tax returns with the IRS totaling more than $1.85 million dollars.

Lara’s co-defendant, Julian Balbi, 23, of Providence, was sentenced to 30 months in federal prison for his participation in the scheme. Both men were also ordered to serve three years’ supervised release upon completion of their prison terms and to pay fines of $1,000.

The scheme involved the theft of personal identifying information from over 1,200 individuals, which was then used to file fraudulent tax returns with the IRS. The investigation revealed that between April 2011 and January 2012, 823 fraudulent tax returns seeking refunds totaling $1,854,438.46 were filed with the IRS.

The case was prosecuted by Assistant U.S. Attorney John P. McAdams. Lara and Balbi were arrested by Rhode Island State Police on January 2, 2012, after a routine traffic stop. A search of their vehicle and residences uncovered numerous ledgers and notebooks containing personal identifying information, as well as computers and USB flash drives containing spreadsheets detailing taxpayer information and fraudulent tax returns.

The investigation was a collaborative effort between the Rhode Island State Police, the Internal Revenue Service, and the U.S. Secret Service. The sentences were imposed by U.S. District Court Judge Mary M. Lisi.

Richard Lara was sentenced to 60 months in federal prison for aggravated identity theft, conspiracy, and theft of government property. Julian Balbi was sentenced to 30 months in federal prison for aggravated identity theft, conspiracy, and theft of government property.

Providence, RI – Richard Lara and Julian Balbi were ordered to pay fines of $1,000. The scheme resulted in more than $1.85 million in fraudulent tax returns being filed with the IRS.

This case is a reminder of the importance of protecting personal identifying information and being vigilant against identity theft. The public is encouraged to report any suspicious activity to the authorities.

Related Federal Cases