NEWARK, NJ – Wellington Feliz, 36, of the Bronx, New York, has confessed to his role in a massive tax refund scheme that bilked the U.S. government out of over $1 million. Feliz pleaded guilty in Newark federal court to theft of government property and aggravated identity theft, admitting he knowingly cashed fraudulently obtained IRS refund checks.
The operation, known as Stolen Identity Refund Fraud (SIRF), preyed on residents of the Commonwealth of Puerto Rico, stealing their Social Security numbers and dates of birth. Feliz and his co-conspirators then filed false tax returns, inflating wages and manipulating data to generate fraudulent refunds. These checks, totaling over $2.6 million in losses for the government, were then deposited into bank accounts controlled by the group, with Feliz personally profiting from the illicit funds.
According to court documents, Feliz admitted to depositing approximately 180 fraudulent tax refund checks into accounts under his control and withdrawing the funds. He knew the checks were issued by the IRS and the U.S. Treasury and that depositing them for personal gain was illegal. The scheme was far-reaching, initially involving six co-defendants: Luis Pena, Lourdes Ortiz, Raymundo Hernandez, Isaias Hernandez, Gloria Rivera, all of the Bronx, and Fausto Bernard of Newark. All six have already pleaded guilty and been sentenced for their involvement.
The case took a dramatic turn when Feliz, initially charged in a criminal complaint, violated his pretrial release and fled to the Dominican Republic. After months on the run, he was extradited back to the District of New Jersey in April 2019. An additional conspirator, Angel Fernandez of Newark, has also pleaded guilty. All involved are now ordered to pay restitution to the victims and forfeit assets to the United States government.
Feliz faces a maximum sentence of 10 years in prison and a fine of up to $250,000, or twice the amount of money he illegally obtained, whichever is greater, for the theft of government property charge. The aggravated identity theft charge carries a mandatory consecutive two-year sentence. Sentencing is scheduled for September 24, 2019.
The U.S. Attorney’s Office credited special agents from the IRS-Criminal Investigation, the U.S. Secret Service, and the U.S. Postal Service – Office of the Inspector General for their work on the case. The investigation highlights the ongoing threat of SIRF schemes and the government’s commitment to prosecuting those who exploit stolen identities for financial gain.
Related Federal Cases
- Wellington Feliz, IRS Refund Fraud, New Jersey 2023 · Puerto Rico
- Westchester CPAs Plead Guilty to $2M Tax Fraud · Pennsylvania
- Hector Urena, Stolen Identity Tax Fraud, Puerto Rico 2023 · Puerto Rico
- Michael Blanc, Wire Fraud, Newark NJ, 2024 · New Hampshire
- Porfirio Paredes, $65M Stolen Identity Income Tax Refund Fraud, New Jersey 2023 · Michigan
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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