CLERMONT, Fla. –– A Florida man was sentenced to 51 months in prison Tuesday for his role in a nationwide tax fraud scheme that involved more than 200 participants in at least 19 states, according to the U.S. Department of Justice (DOJ).
According to court documents and statements made in court, Aaron Aqueron, of Clermont, recruited clients to the fraud scheme by convincing them that their mortgages and other debts entitled them to tax refunds.
Aqueron reportedly collected tax and financial information from the clients to send to co-conspirators, who prepared tax returns and other tax documents to submit to the IRS.
These tax returns falsely claimed that banks and other financial institutions had withheld large amounts of income tax from the participants, thereby entitling the clients to a refund.
In reality, the financial institutions had not paid any income to, or withheld any taxes from, these individuals. In total, the tax returns filed by Aqueron’s clients sought more than $14.6 million in tax refunds and caused the IRS to pay out more than $7.6 million, the DOJ said.
As part of his plea, Aqueron admitted he and his co-conspirators received fees from his clients ranging from $10,000 to $15,000 each. Aqueron further admitted he did not report on his 2015 individual tax return the income he received from the scheme.
Aqueron also personally filed false tax returns for other years on which he fraudulently claimed that he was entitled to tax refunds. In response to one of these false tax returns, the IRS issued Aqueron a refund of $193,347.97, the DOJ said.
Aqueron further admitted that, pursuant to the fraud scheme, he attempted to obstruct the IRS’s efforts to collect the tax refunds it issued to his clients.
Last month, the main promoter of the fraud scheme, Iran Backstrom, was sentenced to more than eight years in prison. Backstrom’s second-in-command, Mehef Bey, was sentenced to 11 years in prison.
In addition to the term of imprisonment, the district judge also ordered Aqueron to serve three years of supervised release and pay approximately $5.9 million in restitution to the IRS.
Acting Deputy Assistant Attorney General Stuart M. Goldberg and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Melissa S. Siskind, Kavitha Bondada and Isaiah Boyd III of the Tax Division, and Assistant U.S. Attorney Chauncey A. Bratt for the Middle District of Florida, are prosecuting the case.
