NEWARK, N.J. – In a significant development in a financial fraud case, Omar Khater, a 33-year-old Fairfield, New Jersey tax preparer, has pleaded guilty to charges of defrauding the Internal Revenue Service (IRS) of over $4.4 million. U.S. Attorney Philip R. Sellinger made this announcement today.
Yesterday, Khater’s guilty plea was entered before U.S. District Judge Brian R. Martinotti in Newark federal court. He faces charges of one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS. Meanwhile, the case against Khater’s co-conspirator, Walid Khater, 38, of Arizona, is still pending.
U.S. Attorney Sellinger highlighted the crime’s severity, emphasizing the scheme’s elaborate nature that involved stolen personal information and false tax returns. This fraudulent activity led to the illicit acquisition of millions of dollars from the IRS.
Special Agent in Charge of the IRS Criminal Investigation in Newark, Tammy Tomlins, remarked on the importance of safeguarding personal information, especially with tax filing season approaching. She reiterated law enforcement agencies’ commitment to pursuing those who exploit identities for financial gain.
FBI – Newark Special Agent in Charge James E. Dennehy also commented on the case, stressing the betrayal of trust involved in such schemes, especially by those in positions of responsibility like tax preparers.
The scheme executed by Omar and Walid Khater involved stealing victims’ identities to file false tax returns and claim fraudulent refunds. These returns falsely reported earnings and gambling winnings, leading to significant refund payments by the IRS to various controlled bank accounts.
The count of conspiracy to commit wire fraud carries a maximum penalty of 20 years in prison, and the count of conspiracy to defraud the IRS is punishable by up to five years in prison. Both counts also carry potential fines of $250,000 or twice the gross loss or gain caused by the offense, whichever is greater. Omar Khater’s sentencing is scheduled for June 12, 2024.