There is a new outlaw in Texas. Abraham Yusuff, ringleader of a scheme that stole so much money from the U.S. taxpayer, that Jesse James and Billy the Kid would be jealous. From 2018 to 2021, Yusuff led a stolen-identity-refund scheme that amassed $111 million in fraudulent funds. No horse riding or pistol shooting for Yusuff. A computer and a bunch of debit cards were his weapon of choice. A lot less risk compared to train-robbing. The adrenaline-fueled thrill ride of crime is probably the same for fraudsters and outlaws alike.
Yusuff directed his recruits to provide addresses for the purpose of receiving mail which would include any Internal Revenue Service correspondence such as identity verification letters. They then registered with the IRS, posing as authorized agents of multiple taxpayers. Although those taxpayers weren’t aware of it. Yusuff then directed the IRS to change the addresses on file for the taxpayers and to send their tax information, including account transcripts and wage records, to the addresses and emails the conspirators controlled. So, the IRS gave the fraudsters the information needed to commit fraud? Yes, they did.
Yusuff used the fraudulently obtained information to electronically file more than three hundred and seventy tax returns claiming fraudulent refunds and directed the IRS to split the refunds among several prepaid debit cards. Once Yusuff and the co-conspirators obtained the refunds, they were deposited onto prepaid debit cards. The funds were then laundered by purchasing money orders from local stores in amounts that were designed to avoid having to furnish identification or trigger reporting requirements. Prepaid debit cards and money orders were used to purchase designer clothing, home renovation materials and used luxury cars at auction.
Excellent job by the Treasury Inspector General for Tax Administration in this case.
Today’s Fraud of The Day is based on articles “Feds: Round Rock man led plan to get $111 million from IRS with fraudulent tax refunds” published by the Austin American Statesman on June 7, 2024.
A Round Rock man led a scheme that sought more than $111 million from the IRS through the filing of 370 fraudulent tax refunds, officials said. Abraham Yusuff pleaded guilty to conspiracy to commit mail and wire fraud and aggravated identity theft, according to a news release from the U.S. Department of Justice on May 30.
Yusuff and his co-conspirators, whom he recruited, posed to the IRS as authorized agents of multiple taxpayers, the release said. It said they directed the IRS to change the addresses on file for the taxpayers and send their tax information, including account transcripts and wage records, to the false addresses.
