Stalyn Morales, Identity Theft and Tax Fraud, Pennsylvania 2023

Stalyn Morales Pleads Guilty to Tax Fraud Scheme

A 42-year-old Easton business owner has been found guilty of participating in a scheme to obtain federal income tax refunds using stolen identities.

Stalyn Morales, owner of MDFA Auto in Allentown, Pennsylvania, pleaded guilty to one count of submitting false claims to the United States and one count of aggravated identity theft before United States District Court Judge Jeffrey L. Schmehl on Wednesday, [no date given].

The investigation revealed that Morales sought over $295,000 in fraudulent refunds from the IRS using stolen identities. Investigators discovered the scheme while analyzing computers and computer servers located in Morales' business. Evidence found included a digital cache of stolen identities, fraudulent tax documents, falsified identity documents, and a spreadsheet detailing the scheme.

"Morales' scheme victimized honest taxpayers in two ways: first, by stealing their identities and second, by trying to rip off the federal government," said U.S. Attorney William M. McSwain. "Now, he will face the consequences, as will anybody else who attempts to carry out a similar scheme."

Morales faces a maximum possible sentence of seven years in prison, four years of supervised release, and up to a $500,000 fine. He will also be ordered to pay restitution of the funds that were disbursed before the fraud was detected.

The case was investigated by the Internal Revenue Service, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney David J. Ignall. The IRS is urging citizens to report any suspected instances of identity theft or tax fraud to their local authorities immediately.

Defendant: Stalyn Morales

Criminal Charges: One count of submitting false claims to the United States and one count of aggravated identity theft.

City and State: Easton, Pennsylvania

Case Status: Plea

Sentence: Maximum possible sentence of seven years in prison, four years of supervised release, and up to a $500,000 fine

Dollar Amount: Over $295,000 in fraudulent refunds sought from the IRS

Business: MDFA Auto, Allentown, Pennsylvania

Source: https://www.justice.gov/usao-edpa/pr/allentown-business-owner-admits-identity-theft-and-pursuing-hundreds-thousands-dollars