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Man Admits to $4.4 Million IRS Fraud Scheme
Walid Khater Pleads Guilty to Conspiracy Charges in Newark Federal Court
NEWARK, N.J. – An Arizona man, Walid Khater, has admitted to conspiring to defraud the IRS of over $4.4 million, U.S. Attorney Philip R. Sellinger announced today.
Khater, 38, of Mesa, Arizona, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS. His conspirator, Omar Khater, 33, of Fairfield, New Jersey, previously pleaded guilty to the same charges and is set for sentencing on June 12, 2024.
According to court documents and statements, Walid and Omar Khater, who are relatives, worked together to steal identities and file false tax returns to fraudulently receive tax refunds. They submitted electronic tax documents to the IRS falsely claiming that individuals had earned income or won significant amounts in gambling and lottery winnings. The fraudulent filings also falsely reported tax withholdings, making it appear that the filers were entitled to refunds.
The Khaters used the names and personal identifying information of victims without their knowledge or consent. This led to the IRS issuing refunds totaling $4.49 million, which were then directed into various bank accounts controlled by the Khaters and their accomplices.
The charge of conspiracy to commit wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The charge of conspiracy to defraud the IRS carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Walid Khater’s sentencing is scheduled for October 9, 2024.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, Newark Field Office, under Acting Special Agent in Charge Jenifer L. Piovesan, and special agents of FBI-Newark, under Special Agent in Charge James E. Dennehy, for their roles in the investigation. He also acknowledged the assistance of the NJ Transit Police.
The government’s case is being handled by Assistant U.S. Attorneys Fatime Meka Cano of the Economic Crimes Unit and Katherine M. Romano of the Health Care Fraud Unit in Newark.
