Making Immigration Happen
Chicago Woman Arrested for Selling Fraudulent Identity Documents to Illegal Aliens
A woman was arrested Wednesday, February 13, 2013, on charges she allegedly sold fraudulent identity documents to illegal aliens. These charges resulted from an investigation conducted by U.S. Immigra

Tag Archives: tax fraud

ICE and PRPD Target Operation Arrests 13 for Identity Theft and Document Fraud in Puerto Rico

Thirteen individuals indicted for document fraud and identity theft related charges were arrested Friday, November 16, 2012, in the municipalities of Bayamon, San Juan, and Carolina, Puerto Rico. U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) special agents, worked jointly with the Internal Revenue Service, Puerto Rico Police Department (PRPD) and San Juan Police Department (SJPD) officers in an operation dubbed Game Over.

“Document and identity fraud pose a severe threat to national security and public safety because they create a vulnerability that may enable terrorists, criminals and illegal aliens to gain entry to and remain in theUnited States,” said Angel Melendez, acting special agent in charge of HSI San Juan. “HSI has partnered with federal, state and local counterparts to create the Document and Benefit Fraud Task Force, a series of multi-agency teams developed to target criminal organizations and beneficiaries behind these fraudulent schemes.”

The case involves a scheme to defraud the United States by fraudulently obtaining and converting to cash U.S. Treasury checks issued in connection with fraudulent tax returns filed with the agency. As part of the scheme, tax returns were filed using the personal identifying information of individuals, when in reality, said individuals never filed such tax returns with the IRS. The investigation has revealed that the fraudulent tax returns were filed without the consent of the taxpayers who appear in the returns.

The investigation also uncovered a scheme used by some of the defendants to obtain legitimate, counterfeit or altered Puerto Rico birth certificates, Social Security cards and driver’s licenses to facilitate the movement of illegal aliens already in Puerto Rico to the continental United States.

Those arrested are:

  • Alexander Compres-Rubio
  • Raquel Custodio
  • Jose M. Vega-Rivera
  • Fernando Rosa
  • Nidia Muñoz
  • Eduvigis Rodriguez
  • Salustiano Olivo
  • Damaris Hernandez
  • Jose Javier Serrano
  • Wander Carrasco
  • Mercedes de la Cruz
  • Norwin Santana
  • Julio Peralta

ICE encourages the public to report document and benefit fraud and related information by calling 1-866-DHS-2ICE.

Atlanta Businessmen Sentenced for Immigration and Tax Scam

Three owners of an Atlanta meat supply business have been sentenced to serve time in federal prison following a joint investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Internal Revenue Service (IRS).

Rhett Maughon, 49, of Decatur, Ga., Rafael Villarreal, Sr., 42, of Suwanee, Ga., and Marcus Maughon, 47, of Decatur, were sentenced Wednesday, February 22, 2012 by United States District Judge Thomas W. Thrash, Jr. to serve time in federal prison on charges of tax and immigration fraud.

“Today’s sentence should serve as a stern warning to employers who perpetuate a shadow
economy by hiring an illegal workforce,” said Brock D. Nicholson, special agent in charge of HSI Atlanta. “The defendants knowingly hired illegal workers and circumvented our nation’s immigration and tax laws for financial gain. The goal of our enforcement efforts is two-fold — reduce the demand for illegal employment and protect job opportunities for lawful American workers.” Nicholson oversees HSI activities in Georgia and the Carolinas.

“The defendants’ unwritten business ‘success’ plan for Atlanta Meat Company included
cutting legal corners by hiring undocumented workers and evading federal taxes, in part by ensuring that the cash they received in their business never made it to their accountant’s books,” said United States Attorney Sally Quillian Yates. “In the end, their plan failed miserably. The secret profits they enjoyed for a short time cannot make up for the years they will now spend in federal prison.”

IRS Special Agent in Charge Rodney E. Clarke said, “One of the primary missions at IRS Criminal Investigation is to deter tax fraud through publicizing that offenders are caught and punished. I would like to reassure taxpayers that as they file their tax returns this filing season, the IRS remains vigilant in detecting tax fraud and making sure that everyone pays their fair share.”

Rhett Maughon was sentenced to five years in prison to be followed by three years of
supervised release, and ordered to work 100 hours of community service. Villarreal was sentenced to five years in prison to be followed by three years of supervised release, and ordered to submit to removal proceedings with ICE following completion of his prison term. Marcus Maughon was sentenced to three years in prison to be followed by three years of supervised release, and ordered to work 100 hours of community service. All three defendants pleaded guilty in October, following approximately two days of trial testimony but before the close of the government’s case-in-chief. Each defendant received the
maximum sentence of imprisonment authorized by law.

Significant investigative support for the case was also provided by the FBI and the U.S.
Department of Labor.

Brian D. Lamkin, special agent in charge, FBI Atlanta Field Office, stated: “The
business practices of these three defendants appear to be based on being above the law. Choosing to ignore federal tax laws and U.S. immigration laws is no way to run a business. The FBI will continue to work with its various law enforcement partners in ensuring that these types of blatant violations of U.S. laws are not tolerated.”

“Today’s sentencing highlights our efforts to investigate fraud against the Department
of Labor’s Unemployment Insurance program. These defendants falsely reported
employee wages and failed to pay related employment taxes for considerable personal financial gain. The Office of Inspector General and its law enforcement partners remain committed to combating these types of crimes,” stated Richard Walker, special agent in charge for the Atlanta Regional Office of the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.

According to information presented in court: From early 2001 until June 2006, the
defendants and two others, who are not named as defendants in the indictment,
jointly owned Atlanta Food Authority, doing business as Atlanta Meat Company,
which was in the business of supplying meat products to restaurants throughout
the Southeast. Some of the company’s customers paid in cash. The defendants did
not record all the cash received on the company’s books, and instead used the
cash paid by their customers to pay themselves and employees cash wages.

Employees at Atlanta Meat Company were told when they were hired that they would receive a certain amount as “take home pay.” Most employees were paid that
amount partly in cash and partly by check. Some employees were paid entirely in
cash. The defendants and one of the other owners then divided the remaining
cash equally among themselves. The defendants did not report the cash wages the
company was paying to the payroll service they used to prepare the company’s
weekly paychecks. The payroll service prepared quarterly tax filings on behalf
of the company, which purported to report all wages paid to the employees and
owners. However, because the payroll service was not told about the cash that
was paid to the employees and owners, the quarterly filings were false and
fraudulent and the Atlanta Meat Company underpaid its employee withholding
taxes. In addition, the defendants failed to disclose the cash wages to the
accountant who prepared the company’s corporate tax returns, therefore, the
corporate returns for 2005 and 2006 were false and fraudulent. Each defendant
also failed to report the cash he received as income on his personal tax returns
for 2005 and 2006.

The Atlanta Meat Company employees who were paid entirely in cash were illegal
aliens who lacked authorization to work legally in the United States. A number of the employees who were paid partly in cash and partly by check were also illegally present in the United States and were not authorized to work in this country.

Rhett Maughon and Villarreal each pleaded guilty to a conspiracy count charged in superseding information. Marcus Maughon pleaded guilty to filing a false individual income tax return for the 2005 year.

This case was investigated by special agents of the Internal Revenue Service, HSI,
Federal Bureau of Investigation and United States Department of Labor — Office
of the Inspector General.