New York Return Preparers Charged in Stolen Identity Tax Refund Fraud Schemes
A federal grand jury in Brooklyn, New York, returned indictments this week separately charging two tax return preparation business owners with stolen identity tax refund fraud, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Bridget M. Rohde for the Eastern District of New York.
The first indictment charges Hakeem Bamgbala, a Brooklyn resident and owner of Kaybamz Inc., a tax preparation business in Brooklyn; Afolabi Ajelero, a Queens resident; and Michael Campbell, a Brooklyn resident, with conspiring to commit aggravated identity theft and aggravated identity theft. Bamgbala and Ajelero also are charged with wire fraud.
The indictment alleges that Bamgbala and Ajelero used stolen IDs to file tax returns with the Internal Revenue Service (IRS) and obtain refunds to which they were not entitled. Bamgbala and Ajelero allegedly purchased tax refund products that allowed them to print client refund checks drawn on a bank account into which the IRS directly deposited the refunds. Bamgbala, Ajelero and Campbell allegedly conspired to deposit these checks into a second bank account and then withdrew the funds.
If convicted, Bamgbala, Ajelero and Campbell face a statutory maximum sentence of five years in prison on the conspiracy charge and a mandatory minimum sentence of two years in prison for the aggravated identity theft counts. Bamgbala and Ajelero also face a statutory maximum sentence of 20 years in prison on each of the wire fraud counts. The three defendants also face a period of supervised release, restitution and monetary penalties.
The second indictment charges Oyeniyi Jaiyesimi, the owner of Pace Financial Services, a tax return preparation business located in Springfield Gardens, with wire fraud, aggravated identity theft and filing fraudulent tax returns. According to the indictment, Jaiyesimi used stolen IDs to file fraudulent tax returns with the IRS and obtain refunds to which he was not entitled. The indictment also alleges that Jaiyesimi filed tax returns for clients that used stolen IDs to fraudulently claim dependents and inflate deductions.
If convicted, Jaiyesimi faces a statutory maximum sentence of 20 years in prison for each count of wire fraud, a mandatory minimum sentence of two years in prison for each count of aggravated identity theft and a statutory maximum sentence of three years in prison for each count of filing a fraudulent return. He also faces a period of supervised release, restitution and monetary penalties.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Rohde commended special agents of IRS Criminal Investigation, who conducted the investigations, and Trial Attorneys Mark McDonald and Eric Powers of the Tax Division, who are prosecuting these cases.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.