R.I. Businessman, 3 Others Indicted in $2.8 Million Identity Theft and Fraudulent Treasury Check Scheme

PROVIDENCE, R.I. – A Pawtucket, R.I., businessman and three others, including two employees and the businessman’s sister, have been indicted by a federal grand jury in Providence for their alleged participation in an extensive stolen identity and tax refund fraud scheme which resulted in 448 fraudulently obtained U.S. Treasury checks totaling $2.8 million dollars being deposited into 26 bank accounts under their control.

The indictment charges Juan Vasquez, 55, of Pawtucket, and Erika Tomasino, 43, Belkis Vasquez, 49, and Doris Morel, 43, of Central Falls, with aggravated identity theft, theft of government property, money laundering and mail fraud.

The indictment is announced by United States Attorney Peter F. Neronha; William P. Offord, Special Agent in Charge of IRS Criminal Investigation; Ted A. Arruda,  Resident Agent in Charge of the Providence Office of the U.S. Secret Service; and James V. Buthorn, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division.

Juan Vasquez is the owner and operator of the Dominican Market in Pawtucket, through which it is alleged that a majority of the fraud was perpetrated. Juan Vasquez controlled the bank accounts of the Dominican Market and numerous other businesses in his name and others through which it is alleged the fraud scheme operated.

Juan Vasquez was arrested by federal agents in Tampa, Florida, on September 9, 2015, on a criminal complaint and arrest warrant issued in Rhode Island charging him for his alleged role in the fraud scheme. Vasquez will be returned to Rhode Island for an initial appearance on the criminal complaint and for arraignment on the indictment on dates not yet determined.

Erika Tomasino, an employee of Juan Vasquez, and his sister, Belkis Vasquez, were arraigned today before U.S. District Court Magistrate Judge Lincoln D. Almond and released on personal recognizance. Doris Morel, an employee of Juan Vasquez, was arraigned on Tuesday before U.S. District Court Magistrate Judge Lincoln D. Almond and released on unsecured bond. Not guilty pleas were entered.     

According to court documents, an investigation by federal agents and the U.S. Attorney’s Office, the findings of which are detailed in the indictment returned on September 17, 2015, alleged that between January 2010 and November 2014, the individuals participating in the fraud conspiracy used the stolen identities of hundreds of individuals, mostly residents of Puerto Rico, to file fraudulent tax returns in order to obtain tax refunds.

It is alleged that the defendants deposited 448 fraudulently obtained tax refund checks totaling $2.8 million dollars into 26 bank accounts controlled by the defendants. It is alleged that funds were quickly withdrawn from the banks and used for a variety of personal expenses as well as transferred to the Dominican Republic.

An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The case is being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and John P. McAdams.

The matter was investigated by IRS Criminal Investigation, the U.S. Secret Service and the U.S. Postal Inspection Service, with the assistance of the Pawtucket Police Department.

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