Trong Minh Nguyen, Tax Fraud, California 2024

SAN JOSE, CA – Trong Minh Nguyen, 57, of San Jose, has admitted to orchestrating a brazen scheme to defraud the United States government through false federal income tax returns, raking in over $1.5 million in fraudulent refunds. The guilty plea, entered yesterday, marks a significant step forward in a case pursued by the U.S. Attorney’s Office, the U.S. Postal Inspection Service, and the IRS Criminal Investigation division.

According to court documents, Nguyen, also known as John Nguyen, began his criminal activity in May 2012, targeting unemployed individuals in the San Jose area. He promised them tax refunds, then systematically harvested their personal information – names and Social Security numbers – to fabricate tax returns. Nguyen falsely claimed these individuals were employed and earning income, charging a fee of between $50 and $500 for his services, typically paid after the fraudulent refund checks were cashed.

The scheme wasn’t just about fabricating income; it was about meticulous deception. Nguyen didn’t use legitimate addresses, opting instead for locations where he could intercept the ill-gotten gains. He also concocted entirely false details for wages, tax withholdings, and various tax credits, including the Earned Income Tax Credit and the Making Work Pay Credit. The scope of the operation expanded in June 2012, when Nguyen began conspiring with others to solicit even more victims, requiring only names and Social Security numbers before altering the forms to insert fabricated data.

To further conceal his crimes, Nguyen rented multiple private mailboxes and utilized numerous addresses on Senter Road in San Jose, along with other residential locations, as collection points for the IRS refund checks. The sheer scale of the operation is staggering: approximately 1,700 false federal income tax returns were filed, claiming over $1.5 million in fraudulent refunds. A grand jury indicted Nguyen on June 10, 2015, with charges including conspiracy to submit false claims (18 U.S.C. § 286) and twenty-one counts of submitting false claims (18 U.S.C. § 287).

Under the terms of yesterday’s plea agreement, Nguyen admitted guilt to one count of conspiracy and four counts of filing false claims. The remaining charges will be dismissed. He now faces a maximum sentence of ten years in prison and a $250,000 fine for the conspiracy charge, and up to five years imprisonment and a $250,000 fine for each of the four false claim counts. However, the final sentence will be determined by the court, taking into account U.S. Sentencing Guidelines and federal sentencing laws (18 U.S.C. § 3553).

The case is being prosecuted by Assistant U.S. Attorney Thomas Newman and Department of Justice Trial Attorney Gregory Bernstein. The investigation, a collaborative effort between the U.S. Postal Service and the IRS Criminal Investigation division, serves as a stark reminder that those who attempt to defraud the government will be held accountable. This wasn’t a victimless crime; it’s taxpayer money stolen, and Nguyen will answer for it.

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