Of the top ten list, IRS CI lead Guy Ficco, notes, “each year, I’m amazed with the variety of cases that make our top 10 list. Our agents know how to follow the money, and they use their investigative prowess to target criminals who prey on unsuspecting victims, funnel narcotics into the U.S., and steal from others for personal gain.” With that, let’s look at numbers five and six on the list.
At number six on the list, Abraham Yusoff and his crew made a sizeable score between the years of 2018 to 2021 through identity theft to scam the IRS out of data they then used to file fake tax returns. While identity theft for the purposes of filing for fraudulent tax refunds is a common tax fraud, this cohort took it further.
Yusoff and his co-conspirators first established a mailing address for IRS correspondence. Yusoff and others than stole Centralized Authorization File (CAF) numbers. CAF numbers are unique nine-digit identifiers provided to individuals (like tax preparers and CPAs), who file tax returns for others. The CAFs were then provided to the IRS with requests for data files, which included wage and other data for those whose identity the ring intended to steal.
The group went on to file 370 tax returns for bogus tax refunds. The refunds were routed by the IRS to prepaid debit cards titled to the taxpayer, but controlled by Yusoff. The funds were used to purchase luxury goods or placed in bank accounts in amounts small enough to avoid bank reporting rules.
Overall, the group scammed the IRS for $30 million—but had sought up to $110 million. For the effort, Yusoff earned a prison sentence of 14 years, along with a $30-plus million forfeiture judgment and millions in restitution. Four other crew members received sentences of between 12 and 30 months in prison.
An IRS: CI Special Agent said, “stealing someone’s identity is abhorrent and despicable behavior. This week’s sentencing serves as a stark reminder that fraud and the pursuit of quick gains comes with severe consequences.”
The Jaguars football team lost more than $22 million when the administrator for their team virtual credit card engaged in a long-term embezzlement scheme.
Beginning in 2019, Amit Patel used the team credit card program to skim about $22,221,454 from the team. Until he was fired in 2023, Patel carried out hundreds of transactions . To avoid detection, Patel created fraudulent files and ledger entries to forward to the team accounting unit. Using known and repeat transactions made by the team, Patel was able to duplicate the transactions to cover his own illicit purchasing.
With his embezzled bucks, he bought a new Tesla, engaged in online gambling and real estate purchases, and purchased a wide swath of luxury goods. Patel chartered jets, paid for hotels, bought event tickets, luxe wristwatches, and so much more. Of note, some of the money was also spent on a criminal defense attorney.
Patel pled guilty in late 2023. In March of this year, he was ordered to forfeit his proceeds and serve six years and six months in federal prison.
Do you have a possibly illegal sideline going with your business, and worry about being contacted by the IRS? Talk to a qualified tax defense attorney and maybe avoid the uncomfortable conversation with the IRS down the line.
If you are involved in a tax crime, your best defense is knowledge and a highly skilled legal tax defense. Embezzlement and identity theft earned these defendants prison time. If you are involved in any tax crime or scam, working with an experienced criminal tax attorney early may improve your outcome.
The choice is yours. Call us at 440-250-9709 or reach out to set up a consultation. We serve domestic and international clients from offices in Cleveland and Chicago.
Not sure what to expect if you are already under scrutiny? Download our free eBook, Will I Be Charged with Criminal Tax Fraud?,"for insights into warning signs and potential legal defenses.