Three Sentenced for Fraudulent Tax Refunds

Fraudulent Tax RefundsAccording to the Criminal Investigation Unit of the IRS located in the St Paul office in Minnesota, Yossimar Alarcon-Patino is going to be sentenced on October 7, 2014 following a plea in conspiracy and money laundering. Two other individuals, Maria Teresita Alvarez-Mateos and Seth Mogollon-Flores, who conspired with Alarcon-Patino in filing fraudulent income tax returns have been already sentenced.

In 2009, Ms. Maria Teresita Alvarez-Mateos became an owner of Express Income Tax, a tax preparation business in Minneapolis. She used her position to execute an illegal scheme in order to receive false tax refunds from the IRS with the help of other individuals, Seth Mogollon-Flores and Yossimar Alarcon-Patino. The idea was to use fictitious dependents and phony income on tax returns that they prepared on behalf of innocent taxpayers in order to claim child tax credits. Personal identification information was obtained from illegal immigrants living and working in the US, or from citizens in Mexico. Because these individuals did not have Social Security Numbers, ITINs (Individual Taxpayer Identification Numbers) were requested from the IRS on these taxpayers’ behalf, which made it possible to file their income tax returns in the US. In addition, Yossimar Alarcon-Patino paid Seth Mogollon-Flores to acquire W-2 information for some of their victims, which made the fraudulent returns look more valid.

Maria Teresita Alvarez-Mateos was sentenced to two years in prison and $1,733,679 compensation. Seth Mogollon-Flores has to make a restitution payment of $930,767 and spend 18 months in prison. Yossimar Alarcon-Patino will be sentenced on October 7, 2014.

As you can see from this example, tax fraud schemes are getting more and more elaborate, which makes it very important to protect your personal information, to file tax returns on time, and not to ignore any correspondence received from the IRS or State taxation agencies, even if you believe that you don’t have any tax liability.

This entry was posted in Tax Scams. Bookmark the permalink.