Victor Cruz, a 40-year-old tax preparer from Bakersfield, pleaded guilty to helping Miguel Martinez file false federal tax returns that claimed $25 million in refunds. Martinez is an unauthorized immigrant from Mexico, according to the U.S. Attorney's Office.
Court documents show that between late 2019 and mid-2023, Martinez led a scheme using stolen identities to file false tax returns with fake income and withholding information from non-existent businesses. His accomplice, Cruz, filed over 500 of these false returns, seeking more than $3 million in refunds. Cruz received thousands of dollars in payment from Martinez. The IRS issued about $2.3 million in refunds related to the scheme, as reported by the U.S. Attorney's Office.
Acting U.S. Attorney Michele Beckwith stated that the case against Cruz is the result of an IRS Criminal Investigation, with Assistant U.S. Attorney Joseph Barton leading the prosecution. Cruz could face up to 10 years in prison and a $250,000 fine. His sentencing is scheduled for November 17. Martinez, who was also involved, previously pleaded guilty and was sentenced to six years in federal prison. The scheme involved using stolen identities to create false employment records and file fraudulent tax refund claims, as stated by the U.S. Attorney's Office.
