Rochester Man Sentenced for Tax Refund Scheme

Rochester Man Sentenced for Tax Refund Scheme

A Rochester man has been sentenced to 12 months in prison for his role in a large nationwide tax refund scheme. Juan Marie Delvalle, 26, of Rochester, was convicted of conspiracy to commit tax fraud in connection with the scheme.

Delvalle was sentenced by U.S. District Court Judge David G. Larimer to 12 months in prison and ordered to pay restitution of $1,644,202 to the Internal Revenue Service. The scheme, which took place from February 1, 2011 to October 31, 2011, involved the filing of fraudulent federal income tax returns with the Internal Revenue Service.

Assistant U.S. Attorney Richard A. Resnick stated that the scheme involved the use of stolen identities to file the fraudulent federal income tax returns. The wages and related tax withholdings reported on the federal income tax returns were fabricated in order to obtain the refunds. Most of the returns were filed in the names and social security numbers of individuals residing in Puerto Rico without their knowledge.

Approximately 600 federal returns with Rochester area addresses were filed by a company in Bronx, New York. These 600 tax returns claimed tax refunds totaling $3,555,302 of which $1,644,202 was paid out by the IRS. The refund checks were sent by the IRS to various locations in the Rochester area. Delvalle participated in the scheme by retrieving many of the refund checks which were sent to Rochester and forwarding the money to individuals in the New York City area who were responsible for filing the false tax returns.

The defendant was paid a fee for his participation in the scheme. The sentencing is the culmination of a joint investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, and the Internal Revenue Service – Criminal Investigations, under the direction of Toni M. Weirauch, Special Agent in Charge.

U.S. Attorney William J. Hochul, Jr. announced the sentencing, praising the efforts of investigators who brought the scheme to light. ‘The sentencing of Juan Delvalle is a significant blow to those who would seek to exploit our nation’s tax system for personal gain,’ Hochul said. ‘We will continue to work tirelessly to bring those responsible for such crimes to justice.’

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