BAKERSFIELD, Calif.(KBAK/KBFX) — Victor Cruz, a 40-year-old Bakersfield tax return preparer, pleaded guilty to aiding in a massive tax fraud scheme that sought $25 million in refunds on Monday, July 14, announced the U.S. Department of Justice. Cruz assisted Miguel Martinez, a Mexican resident who was illegally residing in Bakersfield, in submitting fraudulent federal income tax returns.
Court records reveal that from November 2019 to June 2023, Martinez orchestrated a scheme involving thousands of fraudulent tax returns. He used stolen identities to fabricate businesses and report false wage and withholding information to the IRS. Martinez then filed hundreds of individual tax returns using these stolen identities, claiming refunds based on the fictitious data.
Cruz played a significant role by preparing and filing over 500 fraudulent tax returns, which claimed more than $3 million in refunds. In return, Cruz received thousands of dollars in fees from Martinez…