Dominican Tax Preparer Arrested in New York for $100 Million Fraud Scheme
New York, April 16 (EFE) – Rafael Alvarez, a Dominican tax preparer known as ‘El Mago’, was arrested in New York yesterday on charges of orchestrating a massive fraud scheme that cost the government an estimated $100 million in losses.
The Federal Prosecutor’s Office has accused Alvarez, the founder of the firm ATAX, which has multiple offices throughout New York, of conspiracy to defraud the United States. This charge carries a maximum penalty of five years in prison. In addition, he faces charges of filing false federal tax returns, attempting to interfere with internal revenue laws, making false returns, and aggravated identity theft, which could result in a two to three-year sentence.
Alvarez, who has been nicknamed ‘The Tax Wizard’ for his supposed ability to make tax burdens disappear, was arrested on the deadline for filing taxes to the government. Authorities allege that Alvarez prepared tens of thousands of false tax returns for individuals in order to reduce their tax liabilities and generate profits for his company. It is estimated that between 2016 and 2019, ATAX made over $15 million from this fraudulent scheme.
The indictment further reveals that between 2010 and 2020, the Bronx County ATAX office prepared approximately 90,000 tax returns, with Alvarez personally overseeing the preparation of false returns. The fraudulent information included false deductions, fabricated losses, fake business expenses, and fraudulent tax credits, all aimed at reducing the tax liabilities of Alvarez’s clients.
Alvarez and an employee also allegedly misled an IRS agent during the investigation, further complicating the case against him.
The U.S. Attorney for the Southern District of New York, Damian Williams, described Alvarez as a prolific fraudster who misled clients and earned millions through his deceptive practices. The arrest of Alvarez marks a significant step in cracking down on tax fraud and ensuring that individuals who engage in such illegal activities face the consequences of their actions.
Alvarez is expected to face trial for his involvement in the fraud scheme, with a potential prison sentence looming over him if found guilty. EFE
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