Former Bakersfield tax preparer pleads guilty for role in $25M fraud

BAKERSFIELD, Calif. (KGET) — A former Bakersfield tax preparer pleaded guilty Monday to helping another man file fraudulent tax returns claiming $25 million in refunds over several years, the U.S. Attorney’s Office in Fresno said.

Federal prosecutors said Victor Cruz, 40, pleaded guilty to charges related to a scheme where Cruz helped another man file thousands of fraudulent tax returns using stolen identities, fake businesses to claim $25 million in refunds. The IRS paid $2.3 million of the $25 million claimed in the fraudulent returns.

RELATED: 2 Bakersfield men indicted in $25 million tax fraud, ID theft scheme: US DOJ

Officials said Cruz helped more than 500 fraudulent tax returns and received thousands of dollars in fees from a co-conspirator in exchange for his services.

Cruz’s co-conspirator, Miguel Martinez, led the scheme between November 2019 and June 2023 that included filing fake tax returns for non-existent employees and businesses that were owed refunds based on fraudulent wage and withholding information, federal officials said. Martinez pleaded guilty in June 2024 and was sentenced to six years in federal prison…

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