Defendant Sentenced To Nearly Six Years In Prison For Leading Multi-year Tax Fraud Scheme

United States Attorney Andrew M. Luger today announced the sentencing of YOSSIMAR ALARCON-PATINO, 25, to 70 months in prison for directing a conspiracy to obtain tax refunds by filing false income tax returns. He was also ordered to pay more than $1.7 million in restitution to the Internal Revenue Service. ALARCON-PATINO pleaded guilty on August 23, 2013, to Conspiracy to Defraud the United States and Money Laundering Conspiracy. Three other defendants pleaded guilty to conspiracy to defraud the United States or related charges as a result of this investigation. MARIA TERESITA ALVAREZ-MATEOS pleaded guilty on September 25, 2013, to one count of Conspiracy to Defraud the United States; SETH MOGOLLON-FLORES pleaded guilty on December 5, 2013, to one count of Conspiracy to Defraud the United States; and YULIANA ALVAREZ-MATEOS pleaded guilty on January 2, 2014, to one count of Making a Materially False Statement to Federal Agents.

According to his guilty plea and documents filed in court, since at least 2010, ALARCON- PATINO engaged in a tax fraud scheme through which he obtained tax refunds by filing false income tax returns that reported false income and claimed fictitious dependents. The majority of the false returns filed by ALARCON-PATINO were for undocumented workers or fictitious individuals. The Internal Revenue Service (IRS) requires people without Social Security numbers to obtain an Individual Taxpayer Identification Number (ITIN) in order to file tax returns and W-2 forms. ALARCON-PATINO obtained fake identification documents that he used to obtain false ITINs. MOGOLLON-FLORES also provided legitimate W-2 wage information to ALARCON-PATINO, which ALARCON-PATINO would augment and file with the tax returns. ALARCON-PATINO paid MOGOLLON-FLORES $100 for each W-2 he provided.

According to his guilty plea and documents filed in court, ALARCON-PATINO also falsely reported dependents in order to claim child tax credits and thereby generate a higher refund payment. He had the refund checks mailed to his residence in Minneapolis, and the residences of other defendants in Minnesota, who cashed the checks for him in exchange for a percentage of each check cashed.

This case is the result of an investigation by the Internal Revenue Service-Criminal Investigation Division, Federal Bureau of Investigation, U.S. Postal Inspection Service, and U.S. Department of the Treasury – Office of the Inspector General.

Assistant U.S. Attorney William Otteson prosecuted this case.

Defendant Information:

YOSSIMAR ALARCON-PATINO, 25
Minneapolis, Minn.

Convicted:
• Conspiracy to Defraud the United States, 1 count
• Money Laundering Conspiracy, 1 count

Sentenced:
• 70 months in prison
• Restitution ordered in the amount of $1.7 million

MARIA TERESITA ALVAREZ-MATEOS, 41
Bloomington, Minn.

Convicted:
• Conspiracy to Defraud the United States, 1 count

Sentenced:
• 24 months in prison

SETH MOGOLLON-FLORES, 29
Willmar, Minn.

Convicted:
• Conspiracy to Defraud the United States, 1 count

Sentenced:
• 18 months in prison

YULIANA ALVAREZ-MATEOS, 30
Minneapolis, Minn.

Convicted:
• Making a Materially False Statement to Federal Agents, 1 count

Sentenced:
• 2 years probation

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