Each year, Internal Revenue Service Criminal Investigation (IRS-CI) releases its “Top Ten” list of the most significant criminal cases it has prosecuted. The list is not just a recap of bad behavior but it is a roadmap of what the IRS is prioritizing, investigating and aggressively prosecuting.
We previously covered numbers nine and ten. Below, we break down numbers eight through one and what they signal for 2025.
From false tax returns to money laundering
-
Number eight: Catalytic converter ring busted: A crew of 15 defendants was part of a national investigation into the theft of catalytic converters. Tou Sue Vang, a resident of Sacramento, California, received a 12-year prison sentence for laundering money and trafficking catalytic converters from California to New Jersey.
-
Number seven: “Magician” tax preparer sentenced for false returns: Rafael Alvarez received four years in prison for coordinating the filing of tens of thousands of false tax returns for clients. As a business owner, Alvarez hired easily intimidated employees to participate in the scheme for a decade. Known as the Magician for his skill in reducing tax liability for clients, Alvarez and his company created fake expenses, false deductions, and submitted false information to the IRS to steal $145 million from the agency. Alvarez must now pay back the stolen funds in addition to more than $11 million in restitution.
-
Number six: Money laundering and embezzlement in Arizona: Former Santa Cruz County, Arizona Treasurer, Elizabeth Gutfahr, will serve a decade in prison for embezzling and laundering approximately $38 million by diverting county funds into her own shell companies. She also failed to file tax returns reporting the stolen funds, a pattern common in tax fraud cases.
-
Number five: Aviation crimes: John Walker, owner of Hansen Helicopters Inc., was sentenced to more than 33 years in prison for running an illegally registered helicopter business in Guam. Using helicopters that were not airworthy, Walker brought in more than $400 million while his aircraft were involved in 38 accidents that caused serious injury, including 10 fatalities.
-
Number four: Investment fraud: Texan Rahool Makani will spend 20 years in prison for bilking investors out of $14 million and laundering the money to fund a luxe lifestyle of private jets, jewelry, gambling, and pricey cars.
-
Number three: Identity theft scheme: Christina Chapman helped foreign workers obtain remote U.S. IT positions at more than 300 companies by using stolen U.S. identities. She was sentenced to eight years in prison and ordered to forfeit $284,555 intended to pay the fraudulent employees, along with a judgment of $176,850.
-
Number two: Crypto mixer money laundering: Keonne Rodriguez and William Hill were sentenced to five and four years in prison for using Samourai Wallet to transfer and launder dark money tied to drug trafficking, criminal schemes, and child pornography websites.
-
Number one on the IRS-CI list: Covid relief fraud: Abdiaziz Farah, ring leader of the Feeding our Future scheme, was sentenced to 28 years in prison and ordered to pay $47,920,514 in restitution. Farah and others claimed to provide meals to disadvantaged children, but few, if any, meals were ever served. Many listed meal sites were parking lots or empty commercial spaces in Minnesota. He was convicted of money laundering, conspiracy to commit wire fraud, wire fraud, federal programs bribery, and false passport statements. The judge noted that Farah arrived in the U.S. as a refugee and received schooling, housing, a tuition grant, and employment.
From employment tax fraud to crypto laundering to pandemic relief scams, these cases share one theme: once IRS-CI becomes involved, the consequences are severe and often irreversible. Criminal tax exposure rarely begins with an indictment. It often starts with underreporting, misclassification, payroll decisions, or financial shortcuts that spiral into something far more serious.
If your tax conduct may be at risk
If you believe you have significantly underreported income, misused payroll funds, participated in a questionable tax strategy, or are concerned that your conduct may draw IRS scrutiny, the most important step is getting legal guidance early. Call us at 440-250-9709 to set up a consultation. We serve clients across the U.S. and internationally from our offices in Cleveland and Chicago.
Before you speak with anyone, including investigators, download our free guide, "Will I Be Charged with Criminal Tax Fraud." It outlines how criminal tax cases develop, what triggers investigations, and what steps to take immediately to protect yourself.
