October 30, 2001
ARIZONA MAN GETS NEARLY SIX YEARS IN PRISON
FOR PARTICIPATING IN MASSIVE TAX FRAUD RING
A Scottsdale resident has been sentenced to 71 months in federal
prison for conspiring with others to submit numerous false federal income
tax returns that sought refunds in the names of people whose identities
were fraudulently obtained from the database of a Los Angeles County agency.
Julius Alli, 41, who at the time of the offenses resided in Granada Hills, California, was sentenced Monday afternoon in federal court in Los Angeles. In addition to the prison term, United States District Judge George H. King ordered Alli to pay $38,500 in restitution to the Internal Revenue Service. That restitution figure represents about half of the money paid out by the IRS in relation to fraudulent tax returns for which Alli was held accountable.
Alli was convicted just over one year ago of five felony counts – conspiracy to file false income tax returns and four counts of filing bogus returns. After a four-day trial, a federal jury deliberated for one day before delivering guilty verdicts on all counts alleged in a five-count indictment.
The evidence presented at trial showed that Alli used the names and Social Security numbers of unsuspecting adults and children to file fraudulent tax returns. Alli received the names and related information from county database lists obtained through his former wife, who at the time of the criminal conduct in 1994 worked for the Los Angeles County Department of Children and Family Services.
Alli and his co-conspirators used the information to prepare multiple false tax returns in 1994 for income allegedly earned in 1993. The evidence showed that Alli and others rented private post office boxes in Southern California and Phoenix, where they planned to receive refund checks from the IRS.
The IRS estimates that the entire scheme netted approximately $1 million before it was uncovered.
The conviction of Alli culminates a series of prosecutions against members of this tax fraud ring. The prosecutions began in 1998 with “tax day” searches and arrests that targeted one of the largest multiple-party tax refund schemes ever. Previously charged and convicted were:
? Barry Nnanna, 40, of Sherman Oaks, who was convicted in June 1999 of conspiracy, false claims, and bank fraud. He was sentenced in September 1999 to 57 months in federal prison.
? Samuel Aragbaye, 49, and his wife, Olibisi Aragbaye, 41, both of Riverside, who were sentenced in September 1999 to 78 months and 24 months, respectively, in prison, for their role in the scheme.
? Gabriel Popoola, 49, of Hawthorne, who received a sentence of 18 months in prison for his role in the scheme.
? Dele Akanmu, 46, of Los Angeles, who pleaded guilty to the scheme and was sentenced to two years in prison.
The cases against Alli and the other defendants were investigated by Internal Revenue Service Criminal Investigation.
Release No. 01-161
Return to the 2001 Press Release Index.
Return to the Home Page