Rhode Island Businessman Pleads Guilty To Aggravated Identity Theft, Tax Charges In $3.5 Million Tax Refund Scam
PROVIDENCE, R.I. – Anthony Delfarno, 53, of East Greenwich, R.I., pleaded guilty in U.S. District Court in Providence today to using personal identifying information of his children and other family members, a girlfriend, and from more than a dozen corporations that he created in order to file fraudulent tax returns seeking more than $3.5 million dollars in tax refunds.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Delfarno admitted that for four years he repeatedly made false representations on personal and business tax documents he filed with the IRS seeking $3.5 million in tax refunds, and that he collected more than $1.4 million dollars to which he was not entitled.
Delfarno’s guilty plea to eleven counts of mail fraud, twenty-eight counts of theft of government funds and three counts of aggravated identity theft is announced by United States Attorney Peter F. Neronha; William P. Offord, Special Agent in Charge of IRS Criminal Investigation; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
According to court documents and information presented to the court, Delfarno filed twenty-five false individual income tax returns for tax years 2008 through 2011 in his own name, the names of several family members, including five of his children, and in the name of a girlfriend, claiming fraudulent refunds totaling $1.1 million dollars. Delfarno signed the returns either electronically or manually. Approximately $400,000 was paid to the defendant.
Additionally, Mr. Delfarno filed thirty false corporation income tax returns, for which he claimed refunds of $2.4 million dollars. $1 million dollars was paid to the defendant. The corporations were formed by Delfarno in order to execute the scheme.
Wire fraud is punishable by statutory penalties of up to 20 years in federal prison and a fine of up to $250,000; false claims against the United States is punishable by a statutory penalty of up to 5 years in federal prison and a fine of up to $250,000; and aggravated identity theft is punishable by a statutory penalty of a mandatory sentence of two years in federal prison, to be served consecutive to all other penalties imposed.
Delfarno, who has been released with GPS monitoring since his arrest and arraignment on December 18, 2014, is scheduled to be sentenced on September 16, 2015.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose.
The matter was investigated by IRS Criminal Investigation and the Rhode Island State Police.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. The President established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/