Ecuadorian National Charged with Tax Refund Fraud

BOSTON – An Ecuadorian national residing in New York City was arrested and charged on Tuesday, Sept. 29^th in connection with his role in a stolen identity tax refund fraud scheme.

Ricardo E. Candelo, 58, was charged with one count of theft of public money.  He was arrested at his home in Queens, New York and had an initial appearance in U.S. District Court in Brooklyn, New York.  Candelo was released on conditions and ordered to appear in U.S. District Court in Boston on Oct. 6, 2015, before Magistrate Judge David H. Hennessy.

According to the criminal complaint, in 2012, federal agents learned that a New York criminal organization was searching for a way to cash fraudulently obtained federal income tax refund checks.  Thereafter, with the assistance of a cooperating witness, agents arranged a series of undercover meetings with members of the New York organization.  During these meetings, which took place in South Attleboro, Mass. between July and September 2012, Candelo and his associates delivered federal income tax refund checks totaling over $75,000.  As part of the undercover operation, agents cashed these checks and returned the proceeds to the New York organization as instructed.  All of the refund checks involved in the scheme trace back to fraudulent federal income tax filings submitted without the authorization of the tax payer.

The charging statute provides a sentence of no greater than 10 years in prison, three years supervised release, and a fine of $250,000.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations Boston; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Lisa A. Quinn, Special Agent in Charge of U.S. Secret Service, made the announcement today.  The case is being prosecuted by Assistant United States Attorney Jordi de Llano of Ortiz’s Major Crimes Unit.