Three Individuals Charged in Tax Refund Fraud Scheme

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida; John V. Gillies, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID); Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office; and Henry Gutierrez, Postal Inspector in Charge, U.S. Postal Inspection Service, Miami Division, announced the unsealing of an indictment charging Jude Alcindor, Jr., aka “Junior,” 26, of Miami, Florida; Dwayne Solomon, 35, of Hialeah, Florida; and Ralph Armand, 29 of Miramar, Florida, for their participation in a tax refund scheme. Defendants Alcindor and Armand had their initial appearances today before U.S. Magistrate Judge Barry S. Seltzer and were released on bond. Defendant Solomon remains at large.

More specifically, the defendants are charged with one count of conspiracy to defraud the government by filing a false claim, in violation of Title 18, U.S.C. §286; one count of knowingly using another person’s identification to obtain a federal income tax refund, in violation of Title 18, U.S.C. §1028(a)(7), (b)(2)(A), (c)(3)(A), and 2; and one count of stealing a federal income tax refund check, in violation of Title 18 U.S.C §641 and 2. If convicted, the defendants face a maximum statutory sentence of up to 10 years in prison on the conspiracy count, up to five years in prison on the identity theft count, and up to 10 years on the theft of government property count.

The defendants are alleged to have conspired to present a false claim to the IRS for a federal income tax refund in the amount of $226,930. According to the allegations in the indictment, on April 13, 2011, defendants Alcindor and Armand met with a cooperating individual (CI) and showed the CI a color photocopy of a federal income tax refund check obtained through identity fraud. On April 15, 2011, defendant Solomon, in order to have the check converted to cash, gave the CI the actual income tax refund check in the name of B.S. B.S. was a deceased individual whose identity had been stolen. In addition, Solomon told the CI that he had more tax refund checks available once this check cleared. Solomon offered to pay the CI 40 percent of the refund check amount(s) to have the check(s) cashed. On April 28, 2011, defendants Alcindor and Armand traveled to Miramar to receive the proceeds of the cashed refund check but were arrested by federal law enforcement authorities.

Mr. Ferrer commended the investigative efforts of IRS-CID, FBI, USSS, and U.S. Postal Inspection Service. This case is being prosecuted by Assistant U.S. Attorney Neil Karadbil.

An indictment is only an accusation, and a defendant is presumed innocent until proven guilty.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.