MORRIS COUNTY — A tax preparer was sentenced to 57 months in prison for conspiring to obtain over $4.4 million by defrauding the IRS, U.S. Attorney Philip R. Sellinger announced.
Omar Khater, 33, Fairfield, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court on Jan. 23, 2024, to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS. Khater’s conspirator, Walid Khater, 38, of Arizona, pleaded guilty on May 23 to an information charge him with one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS.
“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. Working with our law enforcement partners, we will root out these illegal and dangerous schemes, and those who perpetrate them can expect the same result as this defendant,” 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. IRS – Criminal Investigation will continue to vigorously investigate individuals who attempt to steal taxpayer money from the U.S. Treasury.”
According to documents filed in this case and statements made in court:
Omar and Walid Khater were relatives who worked together and with others to steal victims’ identities, which they used to file false tax returns and fraudulently receive tax refunds from the IRS. They electronically submitted 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. The Khaters and others typically submitted these fraudulent tax filings using the victims’ names and personal identifying information without the victims’ knowledge or permission. The fraudulent filings caused the IRS to pay lucrative tax refunds, which the Khaters and others directed to various bank accounts they controlled. This scheme caused the U.S. Treasury to issue tax refunds of $4.49 million, which the Khaters and others diverted to bank accounts they controlled in New Jersey and elsewhere.
In addition to the prison term, Judge Martinotti sentenced Omar Khater to three years of supervised release and ordered restitution of $4.49 million.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Piovesan in Newark, and special agents of FBI-Newark, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to today’s sentencing.
Assistant U.S. Attorneys Fatime Meka Cano of the Economic Crimes Unit and Katherine M. Romano of the Health Care Fraud Unit in Newark represent the government.
