New Brunswick Man Sentenced in Tax Fraud Scheme

A New Brunswick man has been sentenced to four years in prison for his participation in a massive tax refund scheme.

Manuel Rodriguez, 50, was involved in a scheme that resulted in the filing of 8,000 fraudulent income tax returns worth more than $65 million, according to a press release from the office of U.S. Attorney Paul J. Fishman.

The false documents bilked more than $12 million out of the U.S. government. 

Rodriguez had previously pleaded guilty in federal court to charges of conspiracy to defraud the United States, theft of government property and aggravated identity theft.

According to authorities, an investigation showed that from at least 2007, dozens of people in New Jersey and New York participated in a scheme in which they obtained personal identifying information of Puerto Rican citizens and used them to create fake 1040 tax forms. 

These documents contained false information regarding wages and taxes withheld and were filed electronically for tax returns, many from the same IP addresses, according to the release.

"During the course of the investigation, members of the task force identified certain “hot spots” of activity and intercepted more than $22 million in refund checks – that had been applied for fraudulently – before they were delivered to members of the conspiracy," the release said. 

On Thursday, U.S. District Judge Claire C. Cecchi sentenced Rodriguez to 48 months in prison, three years of supervised release restitution in the amount of $5.2 million, according to the release.