Union County, New Jersey Man, Sentenced To Two Years In Prison For Stolen Identity Refund Fraud Scheme

NEWARK, N.J. – A Union County, New Jersey, man was sentenced to 24 months in prison for his role in a scheme to steal money through fraudulently obtained refund checks issued by the U.S. Treasury, U.S. Attorney Craig Carpenito announced today.

Armand Joseph, 46, of Linden, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an indictment charging him with conspiring to defraud the United States and theft of government funds. Judge Wigenton imposed the sentence on Sept. 13, 2018, in Newark federal court.

According to documents filed in this case and statements made in court:

Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that involves the use of stolen identities to commit tax refund fraud. SIRF schemes generally share a number of hallmarks. Perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico. They then complete Form 1040 tax returns using the fraudulently obtained information and falsifying wages earned, taxes withheld, and other data, always ensuring that the fraudulent tax return generates a refund. They direct the U.S. Treasury Department to mail refund checks to locations that the perpetrators control or can access. With the fraudulently obtained refund checks in hand, SIRF perpetrators generate cash proceeds by depositing the checks into bank accounts that they control or cashing the checks at check cashing businesses.

Beginning in January 2012, members of the conspiracy obtained stolen identities of residents of Puerto Rico and used them to file fraudulent income tax returns seeking refunds to which they were not entitled. They directed the checks to addresses in New Jersey that they controlled so they could receive them. Joseph used his position as a teller at a check-cashing business to cash checks for the conspirators.

In addition to the prison term, Judge Wigenton sentenced Joseph to three years of supervised release and ordered him to pay restitution of $247,344, and to forfeit the same amount.

U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John Tafur in Newark;, inspectors with the U.S. Postal Service Office of Inspector General, under the direction of Inspector in Charge James Buthorn; and Carl Riley, Public Safety Director, Plainfield Police Division, Criminal Investigation Bureau, with the investigation leading to today’s charges and arrests.

The government is represented by Assistant U.S. Attorney Sammi Malek of the Criminal Division, Newark.

Defense counsel: Paul Condon Esq., Jersey City, New Jersey