Ovidiu Isac, an Illinois man, is facing federal charges accusing him of participating in a conspiracy to claim over $2.1 million in fraudulent federal income tax refunds, of which false refunds totaling more than $1.3 million were actually obtained. According to the affidavit supporting the criminal complaint, Isac and his co-conspirators allegedly split the proceeds of the tax refunds by withdrawing the funds deposited into co-schemers’ bank accounts. They are accused of knowing that they were not entitled to these refunds. Isac was charged with conspiracy to claim false tax refunds in a criminal complaint that was unsealed in Chicago following his arrest.
According to the affidavit, the IRS Fraud Detection Center identified a scheme for the 2007 tax year involving approximately 251 false tax returns filed electronically. These returns claimed tax refunds totaling more than $1.48 million. All of the returns were based on false W-2s which showed employment income and false deductions for moving expenses submitted in the names of Romanian nationals. The fraud center further identified another identical scheme for the 2008 tax year claiming refunds totaling more than $640,000, and the IRS has since flagged similar returns that have been filed for the 2009 tax year.
According to the government, the vast majority of the taxpayers whose returns generated the tax refunds at issue were people who traveled to the United States on J1 exchange visitor visas for several months in 2006 or 2007. According to the affidavit, these individuals were not in the United States at the times reflected on the tax returns and did not earn wages in the U.S. during those years.
The affidavit further alleges that many co-conspirators withdrew almost the entire amount of the tax refund in cash the same day as the refund appeared in the account or shortly thereafter.
Conspiracy to claim false tax refunds carries a maximum penalty of 10 years in prison and a $250,000 fine.
Douglas McNabb and other members of the firm practice and write extensively on matters involving Federal Criminal Defense, Interpol Litigation, International Extradition and OFAC Litigation.
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