April 24, 2024

Brad Marolf

Business & Finance Wonders

Former Owner Of Tax Preparing Small business Convicted Of Fraud, Identification Theft, And Funds Laundering Crimes | USAO-SDNY

Damian Williams, the United States Attorney for the Southern District of New York, announced that ARIEL JIMENEZ, a/k/a “Melo,” was convicted right now following a two-week jury trial in advance of the Honorable Sidney H. Stein.  As the jury identified, involving in or about 2009 via in or about 2015, JIMENEZ, the operator of a tax preparation business in the Bronx, New York (the “Business”), offered the stolen identities of minors to his prospects so that his consumers could claim inflated tax refunds.  The jury convicted JIMENEZ of 4 counts: conspiracy to defraud the United States, conspiracy to dedicate wire fraud, aggravated identity theft, and income laundering.

U.S. Attorney Damian Williams claimed:  “Ariel Jimenez’s tax and identification theft crimes cruelly pressured his victims to endure bureaucratic snafus and agonizing delays for their a great deal-necessary tax refunds. Jimenez now stands convicted, and now faces yrs in federal prison. Today’s conviction is a stark reminder that tax fraud success in actual-environment victims and genuine-lifestyle implications.”

According to the Indictment, evidence presented all through demo, court docket paperwork, and statements in open up court:

Beginning in or about 2007, JIMENEZ started the Company.  From the outset, JIMENEZ attained hundreds of stolen minor identities and, working with his co-conspirators, bought individuals identities, as fraudulent dependents, to his clients for involving $1,000 and $1,500 in funds.  JIMENEZ individually acquired $1,000 in income for each individual identification marketed.  JIMENEZ and his co-conspirators callously referred to these stolen identities as “pollitos,” which means small chickens.  In some several years, JIMENEZ sold additional than a thousand identities, resulting in own earnings to him of extra than $1 million for every year.  In addition, JIMENEZ also made hundreds of hundreds of dollars just about every year in the tax expenses that his Business enterprise charged just to get ready fraudulent tax returns.  In return for their participation in this plan, the shoppers acquired countless numbers of dollars in inflated tax refunds.

JIMENEZ’s use of stolen identities harmed the real caretakers of the fraudulently claimed youngsters.  In some instances, the persons truly using care of these small children experienced a lot-essential tax refunds delayed and were demanded to verify their actual link to their very own dependent youngsters.

JIMENEZ utilized the gains from his tax preparing business to purchase millions of bucks of genuine estate, in addition to funding his lavish life-style.  By his very own admission, JIMENEZ put in extra than $5.5 million of the Business’s proceeds on houses in the United States and abroad, jewellery, cars, and gambling.  In or about March 2016, JIMENEZ transferred numerous qualities procured with fraud proceeds to his mom and dad, for minimal to no value, in purchase to conceal the prison supply of the money employed to obtain the attributes. 

A single of the most important credits claimed by JIMENEZ and the Business enterprise for their purchasers was the Earned Profits Tax Credit rating (“EITC”).  The EITC is meant to offer tax aid or tax refunds for qualifying low and reasonable revenue working persons and people.  Concerning tax yrs 2009 and 2014, the Small business submitted somewhere around 14,199 personal revenue tax returns declaring the EITC.  In overall, these returns claimed around $37,910,246 in the EITC on your own.  All through these years, involving 54% and 62% of all own profits tax returns submitted by the Company claimed the EITC.  By comparison, somewhere around 41% of all returns filed by tax preparers in the Bronx and somewhere around 20% of all returns filed by tax prepares nationwide claimed the EITC.

JIMENEZ was initially arrested in November 2018, alongside with 8 of his co-conspirators.  JIMENEZ is the past of the defendants charged to be convicted.  The remaining eight defendants have pleaded guilty to fraud and other offenses.

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ARIEL JIMENEZ, 38, of Bronx, New York was convicted at demo of a single depend of conspiracy to defraud the United States with regard to tax returns, which carries a greatest sentence of 10 a long time conspiracy to commit wire fraud, which carries a maximum sentence of 20 a long time aggravated identification theft, which carries a required consecutive sentence of 2 a long time and funds laundering, which carries a most sentence of 20 a long time.  The highest prospective sentence in this scenario is prescribed by Congress and is supplied below for informational applications only, as any sentencing of the defendants will be established by the judge.  JIMENEZ is scheduled to be sentenced by Decide Stein on June 6, 2022.

Mr. Williams praised the superb work of the IRS-Criminal Investigation. 

This scenario is getting dealt with by the Office’s General Crimes Unit. Assistant U.S. Attorneys Daniel G. Nessim, Ni Qian, Marguerite Colson, and Dina McLeod are in cost of the prosecution.

Damian Williams, the United States Legal professional for the Southern District of New York, introduced that ARIEL JIMENEZ, a/k/a “Melo,” was convicted right now adhering to a two-7 days jury trial right before the Honorable Sidney H. Stein.  As the jury discovered, in between in or about 2009 as a result of in or about 2015, JIMENEZ, the operator of a tax preparation enterprise in the Bronx, New York (the “Business”), offered the stolen identities of minors to his clients so that his consumers could assert inflated tax refunds.  The jury convicted JIMENEZ of four counts: conspiracy to defraud the United States, conspiracy to commit wire fraud, aggravated id theft, and cash laundering.

U.S. Lawyer Damian Williams stated:  “Ariel Jimenez’s tax and identity theft crimes cruelly compelled his victims to endure bureaucratic snafus and agonizing delays for their a great deal-needed tax refunds. Jimenez now stands convicted, and now faces many years in federal prison. Today’s conviction is a stark reminder that tax fraud results in true-world victims and true-lifetime penalties.”

According to the Indictment, proof presented throughout trial, court docket documents, and statements in open courtroom:

Commencing in or about 2007, JIMENEZ established the Company.  From the outset, JIMENEZ acquired hundreds of stolen insignificant identities and, doing the job with his co-conspirators, sold all those identities, as fraudulent dependents, to his shoppers for involving $1,000 and $1,500 in dollars.  JIMENEZ individually acquired $1,000 in money for each individual identification sold.  JIMENEZ and his co-conspirators callously referred to these stolen identities as “pollitos,” that means small chickens.  In some many years, JIMENEZ sold a lot more than a thousand identities, resulting in personal profits to him of additional than $1 million per yr.  In addition, JIMENEZ also designed hundreds of 1000’s of dollars just about every yr in the tax costs that his Enterprise charged just to get ready fraudulent tax returns.  In return for their participation in this plan, the clients acquired 1000’s of dollars in inflated tax refunds.

JIMENEZ’s use of stolen identities harmed the genuine caretakers of the fraudulently claimed youngsters.  In some conditions, the persons actually using care of these little ones experienced substantially-wanted tax refunds delayed and had been required to establish their genuine link to their individual dependent small children.

JIMENEZ utilized the profits from his tax preparation business enterprise to get millions of pounds of real estate, in addition to funding his lavish way of living.  By his have admission, JIMENEZ used far more than $5.5 million of the Business’s proceeds on properties in the United States and overseas, jewelry, cars, and gambling.  In or about March 2016, JIMENEZ transferred a number of attributes bought with fraud proceeds to his mother and father, for minimal to no worth, in buy to conceal the legal supply of the funds utilised to acquire the properties. 

1 of the primary credits claimed by JIMENEZ and the Small business for their consumers was the Gained Revenue Tax Credit (“EITC”).  The EITC is meant to give tax aid or tax refunds for qualifying very low and moderate earnings operating persons and families.  In between tax many years 2009 and 2014, the Organization filed close to 14,199 own profits tax returns proclaiming the EITC.  In whole, these returns claimed about $37,910,246 in the EITC by itself.  During these decades, involving 54% and 62% of all individual income tax returns submitted by the Company claimed the EITC.  By comparison, roughly 41% of all returns filed by tax preparers in the Bronx and roughly 20% of all returns submitted by tax prepares nationwide claimed the EITC.

JIMENEZ was 1st arrested in November 2018, along with eight of his co-conspirators.  JIMENEZ is the previous of the defendants billed to be convicted.  The remaining 8 defendants have pleaded guilty to fraud and other offenses.

*                      *                      *

ARIEL JIMENEZ, 38, of Bronx, New York was convicted at trial of 1 rely of conspiracy to defraud the United States with regard to tax returns, which carries a highest sentence of 10 years conspiracy to commit wire fraud, which carries a utmost sentence of 20 decades aggravated identity theft, which carries a obligatory consecutive sentence of 2 a long time and cash laundering, which carries a greatest sentence of 20 decades.  The highest potential sentence in this situation is prescribed by Congress and is presented here for informational applications only, as any sentencing of the defendants will be identified by the judge.  JIMENEZ is scheduled to be sentenced by Decide Stein on June 6, 2022.

Mr. Williams praised the remarkable do the job of the IRS-Prison Investigation. 

This circumstance is getting dealt with by the Office’s Standard Crimes Device. Assistant U.S. Attorneys Daniel G. Nessim, Ni Qian, Marguerite Colson, and Dina McLeod are in cost of the prosecution.