South Jersey Man Admits To Identity Theft, Tax Scheme: Feds

A South Jersey man has admitted to cashing checks for tax refunds he obtained fraudulently by using identities he stole from residents of Puerto Rico, as well as witness tampering, authorities announced.

Alberto Sanchez, 34, of Camden, pleaded guilty to five counts of an indictment, including two counts of theft of government funds, two counts of aggravated identity theft and one count of tampering with a witness or victim, U.S. Attorney Craig Carpenito announced.

Sanchez was one of four people indicted in connection with an extensive scheme involving fraudulently obtained refund checks issued by the U.S. Treasury in April of last year.

The others were 39-year-old Jorge Gutierrez, of Merchantville; Roque Bisono, 29, of Maple Shade; and Awilda Henriquez, 32, of Camden. Charges remain pending against the other three, and they remain innocent unless and until proven guilty.

Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that involves the use of stolen identities to commit tax refund fraud, according to documents filed in the case and statements made in court.

SIRF schemes generally share a number of hallmarks. Perpetrators obtain the personal information of unwitting individuals, who often live in Puerto Rico, including Social Security Numbers and dates of birth.

They then complete Form 1040 tax returns using the fraudulently obtained information and falsifying wages earned, taxes withheld, and other data, always ensuring that the fraudulent tax return generates a refund.

They direct the U.S. Treasury Department to mail refund checks to locations that the perpetrators control or can access. With the fraudulently obtained refund checks in hand,
SIRF perpetrators cash the fraudulently obtained refund checks using bank accounts that they control or at check cashing businesses.

For the 2013 tax year, more than 3,300 SIRF tax returns were filed using the names and Social Security Numbers of residents of Puerto Rico. The refunds were directed to be mailed to a small section of Pennsauken, authorities said.

Of the 3,300 returns filed, several refund checks were issued and ultimately cashed at check cashing agencies in New Jersey, Philadelphia, and New York. They were cashed using false and fraudulent identifications, including fake New Jersey driver's licenses, fake Social Security cards, and fake Department of Homeland Security Permanent Resident Identification cards.

Gutierrez, Bisono, Sanchez, and their conspirators are accused of recruiting mailmen from the U.S. Postal Service to help them steal the tax refund checks from the mail. The mailmen were paid for every U.S. Treasury check they stole, authorities said.

The conspirators also paid "check couriers" to cash the tax refund checks in a variety of ways, including at check cashing businesses in and around Camden, authorities allege. The "check couriers" used fake IDs at the check cashing businesses matching the names on the tax refund checks in order to cash the checks.

The counts of theft of government funds are each punishable by a maximum of 10 years in prison; the count of witness tampering is punishable by a maximum of 20 years in prison; and the counts of aggravated identity theft are each punishable by a mandatory minimum of two years in prison. All the counts are also punishable by a fine of up to $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for Dec. 10.