Final Defendant Sentenced In Tax Fraud Scheme

The final defendant charged in a conspiracy to file fraudulent, federal income tax returns, claiming millions of dollars in bogus refunds, was sentenced yesterday in U.S. District Court, announced Don Cochran, U.S. Attorney for the Middle District of Tennessee.  Victor Oliva, 40, of Hendersonville, Tenn., was sentenced by U.S. District Judge Aleta A. Trauger to 18 months in prison, followed by three years of supervised release.  Judge Trauger also ordered Oliva to pay restitution in the amount of $1,308,422 to the IRS, for his role in the multi-million dollar tax refund scheme.

In April 2015, 10 federal search warrants were executed at various residences and tax return businesses throughout middle Tennessee, including Soto’s Income Tax Service in Madison; Soto’s Services 2 in Hermitage; Soto’s Income Tax in Springfield; Soto Services 1 in Gallatin; and S’ Income Tax Services in Nashville.  As a result of this investigation, agents subsequently determined that part of the tax fraud scheme dated back to 2011 and 46 persons were ultimately charged and convicted of federal offenses.  During the investigation, agents seized more than $1 million in cash; several late model, luxury automobiles; and 11 Nashville-area residential properties owned by one of the defendants.  Many of those individuals charged were in the U.S. illegally and have since been convicted and deported. 

Victor Oliva was the sole owner and operator of one of the tax return preparation business known as S Income Tax Preparation located on Charlotte Pike in Nashville.  On December 8, 2016, Oliva pleaded guilty to his role in the scheme and admitted to preparing and filing 166 false, federal income tax returns with the IRS claiming fraudulent refunds of $1,308,422. 

Other defendants who played a significant role in the scheme include:

Byron Fernandez-Virula, Jr., 25, of Madison, Tenn., pleaded guilty on April 26, 2017, admitting that he prepared and filed 236 false, federal income tax returns claiming fraudulent refunds of at least $1,444,957.  He also admitted to cashing at least $351,000 in fraudulently obtained tax refund checks at a check cashing business located in Shelbyville, Tennessee.  In July 2017 he was sentenced to 24 months in prison followed by 2 years of supervised release, and was ordered to pay restitution in the amount of $1,444,957 to the IRS.

Byron Fernandez-Virula, Sr., 45, of Madison, Tenn., pleaded guilty on June 12, 2017, admitting that he prepared and filed at least 1,064 false, federal income tax returns claiming fraudulent refunds of at least $5,894,827.  He also admitted to cashing at least $817,000 in fraudulently obtained tax refund checks at a check cashing business located in Shelbyville, Tennessee.  He was sentenced in September 2017 to 37 months in prison, followed by 3 years of supervised release and was ordered to pay restitution in the amount of $1,444,957 to the IRS.

Wilmar Soto-Virula, 35, of Madison, Tenn., pleaded guilty on July 7, 2017, admitting that he prepared and filed at least 170 false, federal income tax returns claiming fraudulent refunds of at least $730,707.  He was sentenced in September 2017 to 28 months in prison followed by 2 years of supervised release, and was ordered to pay restitution in the amount of $730,707 to the IRS.

Julio Soto, 30, of Goodlettsville, Tenn., pleaded guilty on July 13, 2017, admitting that he prepared and filed at least 130 false, federal income tax returns claiming fraudulent refunds of at least $737,788.  He was sentenced in November 2017 to 36 months in prison followed by 3 years of supervised release, and was ordered to pay restitution of $737,531 to the IRS.

This case was investigated by IRS-Criminal Investigation and Homeland Security Investigations.  Assistant U.S. Attorneys Thomas J. Jaworski and Byron M. Jones represented the government.