CALIFORNIA — Victor Cruz, a 40-year-old tax preparer from Bakersfield, pleaded guilty Monday to participating in a massive scheme to file fraudulent federal income tax returns that falsely claimed $25 million in refunds, the U.S. Justice Department announced.
The scheme involved Cruz assisting Miguel Martinez, a Mexican national residing illegally in the U.S., from November 2019 through June 2023. Martinez allegedly used stolen identities to create fake businesses and submitted hundreds of tax returns to the Internal Revenue Service (IRS), falsely reporting wages and withholding to claim fraudulent refunds.
Cruz prepared and filed over 500 fraudulent tax returns and received thousands of dollars in fees for his services.
The IRS reportedly paid out $2.3 million of the claimed refunds before the scheme was uncovered.
Martinez has already pleaded guilty and was sentenced to six years in prison. Cruz faces up to 10 years in prison and a $250,000 fine, with sentencing scheduled for November 17, 2025.
