Brazen Identify Theft Scheme Defrauds IRS out of Millions; Ringleader Sentenced
A Texas man is headed to federal prison for leading an identity theft scheme, that defrauded the Internal Revenue Service (IRS) out of millions.
Prosecutors say Abraham Yusuff and his co-defendants ended up stealing $30 million from the IRS and were attempting to steal about $110 million through the scheme.
Yusuff was sentenced to 14 years behind bars. Two co-defendants, Meghan Inyang and Christopher Eduardo, received three and two years in prison respectively.
“The significant sentences handed down by the court reflect not only the injury caused to the Treasury, but also the financial harm and stress the defendants imposed on the innocent taxpayers and accounting professionals swept up in their scheme,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
Brazen Scheme
According to prosecutors, the group pretended to be authorized agents of multiple taxpayers, stealing information from those taxpayers, and using it to win the trust of the IRS.
The defendants then directed the IRS to change the addresses on file for the taxpayers and to send their tax information to the addresses and emails controlled by the defendants.
They used this information to electronically file more than 370 tax returns, claiming fraudulent refunds. They directed the IRS to split the refunds among prepaid debt cards, which were used to avoid reporting requirements.
The defendants also posed as the taxpayers as they responded to IRS verification letters and instructed the IRS to release the funds.
The scheme ran from 2018 to 2021. Prosecutors say they group used the stolen money to buy designer clothes, used cars, and other items.
“Yusuff and co-defendants didn’t just steal money, they stole the lives of hundreds of victims by changing all their contact information with the IRS and posing as authorized representatives for the taxpayers,” said Acting Special Agent in Charge Lucy Tan of IRS Criminal Investigation (IRS-CI) Houston Field Office. “This insidious and complex scheme victimized both the real tax professionals and the people they represent, which is why IRS-CI special agents help take down criminal enterprises and put criminals behind bars.”
Four other co-defendants were earlier sentenced to prison.
IRS-CI and the Treasury Inspector General for Tax Administration (TIGTA) investigated the case.