12-07-04 -- Vasquez, Rolando -- Conviction -- News Release

Jersey City Tax Preparer Convicted of Creating Bogus Returns Using Identities of Unwitting Puerto Rico Residents

NEWARK - A jury today convicted a Jersey City tax preparer on charges that he used the Social Security numbers and identities of residents of Puerto Rico to file false federal income tax returns on their behalf and kept refunds for himself, U.S. Attorney Christopher J. Christie announced.

After approximately six hours of deliberations over two days, the jury convicted Rolando Vasquez, 38, of four counts of making false claims and eight counts of aiding and assisting in the preparation of false income tax returns.

The trial before U.S. District Judge William J. Martini began with attorneys' opening arguments on Nov. 30. The jury began its deliberations on Monday and returned the verdicts today. Vasquez remains free on $500,000 secured bond until sentencing, which Judge Martini scheduled for March 8.

During the trial, the jury heard evidence that Vasquez prepared four false federal tax returns with fictitious W-2 forms using the names and Social Security numbers of unwitting residents of Puerto Rico. Those four tax returns, all for tax year 2001, claimed a total of approximately $20,200 in refunds that were deposited into the defendant's bank accounts.

The individuals in whose names the returns were prepared were unaware of the preparation of the tax returns or that refunds had been issued in their names.

Other testimony revealed that Vasquez prepared false tax returns for unsuspecting clients in the Jersey City area, reporting fictitious charitable contributions and employee expenses. A Special Agent of the Internal Revenue Service Criminal Investigation section testified that he went to Vasquez's business with tax information which should have resulted in his owing money to the IRS. Instead, Vasquez prepared a return that resulted in a $578 refund.

Testimony revealed that Vasquez did this routinely for clients and had built a reputation for being able to get refunds for his clients. However, testimony revealed that the clients were unaware of his falsifications on their returns. Vasquez filed the returns electronically.

"Tax crimes are not victimless crimes," Christie said. "The fraud and loss to the U.S. Treasury, plus the cost of investigating and prosecuting people like Mr. Vasquez create an extra burden on all honest taxpayers."

On the four counts of making false claims, Vasquez faces a statutory maximum sentence of five years in prison and a $250,000 fine; on the eight counts of aiding and assisting in the preparation of false income tax returns, Vasquez faces a maximum sentence of three years in prison and a $100,000 fine.

Christie credited Special Agents of the Internal Revenue Service Criminal Investigation section, under the direction of Special Agent in Charge Patricia J. Haynes, with bringing the case against Vasquez.

The case was prosecuted by Assistant U.S. Attorney Michael Martinez and Department of Justice Tax Division attorney Shawn Noud.

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Defense counsel:

Thomas R. Ashley, Esq. Newark