Robert Xan Paul, Tax Refund Scheme, South Carolina 2024

A South Carolina man currently residing in Brazil pleaded guilty in federal court in San Francisco to conspiracy to submit a false claim, a crime that caused a significant tax loss to the IRS.

According to court documents and statements made in court, Robert Xan Paul, 45, of Sao Paulo, Brazil, conspired with others to defraud the United States by preparing and submitting to the IRS a fraudulent income tax return that claimed a nearly $600,000 refund, which the IRS paid.

Paul was a client of O.I.D. Process, a business owned by his co-conspirators that helped others prepare and file individual federal income tax returns that claimed fictitious Original Issue Discount interest income and federal tax withholdings, resulting in fraudulent claims for tax refunds.

To support his refund claim, Paul created fraudulent IRS forms from financial institutions where he had accounts. Those forms falsely indicated that the financial institutions had withheld federal income tax on his behalf.

In total, Paul caused a tax loss to the IRS of $595,110.

Paul pleaded guilty to one count of conspiracy to submit false claims. He is set to be sentenced on Jan. 21, 2025. Paul faces a maximum sentence of 10 years in prison. He also faces a period of supervised release, restitution and monetary penalties.

A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The case was announced by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and First Assistant U.S. Attorney Patrick D. Robbins for the Northern District of California.

The IRS Criminal Investigation is investigating the case. Trial Attorney J. Parker Gochenour of the Tax Division and Assistant U.S. Attorney Michael Pitman for the Northern District of California are prosecuting the case.

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