Rochester Man Pleads Guilty in Large Tax Refund Scheme
|U.S. Attorney’s Office January 04, 2013|
ROCHESTER, NY—U.S. Attorney William J. Hochul, Jr. announced today that Juan Marie Delvalle, 25, of Rochester, New York, pleaded guilty before U.S. District Court Judge David G. Larimer to conspiracy to commit tax fraud in connection with a large, nationwide tax refund scheme. The charge carries a maximum penalty of 10 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that from February 1, 2011 to October 31, 2011, the defendant was involved in a scheme to obtain income tax refunds by the filing of fraudulent federal income tax returns with the Internal Revenue Service. Specifically, stolen identities were utilized to file the fraudulent returns. In addition, the wages and related tax withholdings reported on the returns were fabricated in order to obtain refunds. Most of the returns were filed in the names and Social Security numbers of individuals residing in Puerto Rico without their knowledge. The refund checks issued as a result of the fraudulent returns were sent to various addresses in Rochester and other locations in the country.
A total of 8,336 returns were filed by a company in Bronx, New York, claiming refunds totaling $45,768,391. Refunds totaling $3,321,542 for 590 of the returns were sent by the IRS to various locations in the Rochester area. Delvalle retrieved the refund checks sent to Rochester and then forwarded the money to individuals in the New York City area who were responsible for filing the false tax returns.
The plea is the culmination of a joint investigation on the part of the Internal Revenue Service, Criminal Investigation Division, under the direction of Toni Weirauch, Special Agent in Charge, New York Field Office; and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota.