Victor Cruz, Tax Return Preparer Sentenced, California 2024

Victor Cruz, Tax Return Preparer Sentenced, California 2024

Victor Cruz, 41, of Bakersfield, California, was sentenced to 18 months in prison for his role in a $25 million tax return fraud scheme, announced U.S. Attorney Eric Grant today.

Between November 2019 and June 2023, Miguel Martinez, 42, a Mexican national residing in the United States illegally, led the scheme to file thousands of fraudulent tax returns claiming millions of dollars in refunds. Martinez, who was sentenced in September 2024 to six years in prison, created fake businesses that reported to the IRS phony wages paid and withholding information for supposed employees.

Martinez then filed thousands of individual income tax returns in the names of the supposed employees that claimed the employees were owed refunds based on the phony wages paid and withholding information that had been reported for them.

Cruz helped Martinez carry out the scheme by preparing and filing more than 500 of the fraudulent tax returns. This was approximately 10% to 15% of the total fraudulent tax returns for which Martinez was responsible. Cruz received thousands of dollars in fees from Martinez in exchange for his services.

The IRS actually paid out $2.3 million of the $25 million in refunds claimed by the fraudulent tax returns.

The case was the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Joseph Barton prosecuted the case.

The defendant, Victor Cruz, was charged with participating in a scheme to submit fraudulent individual federal income tax returns.

Source: https://www.justice.gov/usao-edca/pr/bakersfield-tax-return-preparer-sentenced-role-25-million-fraud-scheme