Sacramento man Arsen Muhtarov, 39, copped to a federal tax scam that bled the IRS of more than half a million dollars. Muhtarov pleaded guilty today to conspiracy to defraud the United States by filing fraudulent tax returns, admitting his role in a brazen refund heist targeting the First Time Home Buyer Credit.
According to court records, Muhtarov teamed up with Aleksandr Kuzmenko, 34, of Loomis—a tax preparer at VK Tax Services in Citrus Heights—alongside Petr Kuzmenko, 39, of West Sacramento, and Valeriy Nikitchuk, 45, of Kent, Washington. Between February and November 2009, the crew weaponized stolen identities and fake addresses to file roughly 90 bogus returns. They claimed credits for people who’d never bought homes, never qualified—just ghosts on paper.
The scam generated $695,724 in fraudulent claims. The IRS paid out $573,000 before catching on. Refunds were wired straight into bank accounts the conspirators controlled. From there, the cash vanished—withdrawn, laundered, and spent like it was theirs all along.
The hammer already fell on the rest of the crew. Petr Kuzmenko got six and a half years behind bars and was ordered to repay $573,332. Aleksandr Kuzmenko, the tax pro who should’ve known better, got over two years. Nikitchuk served 10 months. Now, Muhtarov waits his turn.
On June 1, 2018, U.S. District Judge Garland E. Burrell Jr. will hand down Muhtarov’s sentence. Statutorily, he’s looking at up to 10 years in prison and a $250,000 fine. But the final call rests with the court, guided by federal sentencing rules and the weight of his crimes.
The case was built by IRS Criminal Investigation. Assistant U.S. Attorney Michele Beckwith is handling the prosecution. Another tax fraud ring dismantled—but not before hundreds of thousands in taxpayer dollars disappeared into the pockets of thieves.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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