Essex County Tax Preparer Sentenced to 57 Months for $4.4 Million IRS Fraud

Omar Khater, 33, orchestrated a scheme to steal identities and file false tax returns.

Fairfield, NJ – Omar Khater, a tax preparer from Essex County, was sentenced to 57 months in prison for his role in a conspiracy to defraud the IRS of over $4.4 million. U.S. Attorney Philip R. Sellinger announced the sentencing today.

Khater, 33, pleaded guilty on January 23, 2024, to charges of conspiracy to commit wire fraud and conspiracy to defraud the IRS. His co-conspirator, Walid Khater, 38, of Arizona, pleaded guilty to similar charges on May 23, 2024.

“Omar Khater has admitted his role in an elaborate scheme that used stolen personal identifying information and fabricated tax returns to bilk the IRS of millions of dollars. He and a relative submitted tax documents falsely claiming that the taxpayers listed on those documents had earned certain income or won thousands – and in some cases millions – of dollars in gambling and lottery winnings,” said U.S. Attorney Philip R. Sellinger.

“Omar Khater used stolen identities to file fraudulent tax returns for illicit personal financial gain,” Jenifer L. Piovesan, Special Agent in Charge, IRS - Criminal Investigation, Newark Field Office, said. “He was caught and is now a convicted felon with a prison sentence to serve.”

The Khater relatives, along with others, engaged in identity theft to file false tax returns and fraudulently obtain tax refunds. They submitted false tax documents claiming income and gambling winnings for individuals whose identities they had stolen. These documents falsely reported tax withholdings, entitling the filers to refunds which were then directed to bank accounts controlled by the conspirators. This scheme resulted in $4.49 million in fraudulent tax refunds being issued by the IRS.

In addition to his prison sentence, Judge Brian R. Martinotti ordered Omar Khater to three years of supervised release and restitution of $4.49 million.

Special agents from IRS-Criminal Investigation and FBI-Newark were credited with the investigation leading to today's sentencing. The case was prosecuted by Assistant U.S. Attorneys Fatime Meka Cano and Katherine M. Romano in Newark.