Essex county tax preparer pleads guilty in $4. 4 million irs fraud scheme
Courtroom - File Photo

Essex County Tax Preparer Pleads Guilty in $4.4 Million IRS Fraud Scheme

by
January 24, 2024
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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.

Chris Quigley

Chris Quigley

Chris Quigley is a Staff Writer and Community News Correspondent for Shore News Network, where she covers local government, public safety, community affairs, politics, and issues impacting residents throughout New Jersey. Her reporting focuses on delivering timely, accurate, and relevant news that helps readers stay informed about the communities in which they live and work.

As a member of the Shore News Network editorial team, Quigley works closely with public officials, community leaders, first responders, and local organizations to provide factual coverage of breaking news, municipal government, public policy, and events affecting New Jersey residents. Her work highlights both major developments and the local stories that shape communities across the state.

Quigley is committed to responsible journalism, emphasizing accuracy, source verification, and transparency in every story she reports. She strives to present information in a clear and accessible manner, helping readers better understand the issues, decisions, and events that impact their daily lives.

Through her work at Shore News Network, Chris Quigley contributes to the organization's mission of providing trusted local news coverage, accountability reporting, and community-focused journalism throughout New Jersey.

Chris Quigley is a graduate of Stockton State University and began her career at IN Jersey, the online news and media branch of the Asbury Park Press. She also worked at Monmouth Internet, the Ocean Signal Newspaper, and JTOWN Magazine during her career in both content management and operations.

Degrees: Business B.A. - Stockton University

Experience and interests: Criminal Justice, Business, Animal Care, Entertainment, Lottery News, Local News