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A Family of Fraudsters

Senior Director of Strategic Alliances
LexisNexis Risk Solutions - Government

Family members Walid and Omar Kahter worked together on a scheme to defraud the Internal Revenue Service and along the way steal $4.49 million from the U.S. taxpayer. On May 28, 2024, they both pleaded guilty to income tax fraud. They say that the family that works together stays together. Walid and Omar will be staying together. Staying together in jail. They are both looking at twenty-five years in prison.

Walid and Omar would electronically submit tax documents to the IRS falsely claiming that the individual taxpayers listed on those documents had earned certain income or won thousands (and in some cases millions) of dollars in gambling and lottery winnings. The false filings also claimed tax withholdings on the purported income or gambling winnings that entitled the tax filer to refund payments from the IRS.
Of course, the Khaters submitted these fraudulent tax filings using the names and personal identifying information of individual taxpayers without their knowledge or permission. Fraudsters love a secret. Even better if that secret ruins lives. The fraudulent filings caused the IRS to pay over $4.49 million in fraudulent tax returns. Which the Khaters directed to various bank accounts that they themselves controlled.

Sentencing is scheduled for Oct. 9, 2024. Great job by the IRS-Criminal Investigation, Newark Field Office in this investigation.

Today’s Fraud of The Day is based on article “Man Admits to $4.4 Million IRS Fraud Scheme” published by the Morristown Minute on May 28, 2024.

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.

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