A tax preparer from New Jersey has been sentenced to 57 months in prison for his involvement in a $4.49 million gambling fraud scheme.
Omar Khater of Fairfield, New Jersey was charged for using stolen identities to falsely declare gambling winnings on tax returns and obtain refunds from the Internal Revenue Service (IRS). Working alongside his relative, Walid Khater, the duo filed fraudulent tax returns using victims' names and personal information without their consent.
The false submissions led to the U.S. Treasury making refunds totaling $4.49 million, which the Khaters and their associates directed into various bank accounts in N.J. and elsewhere. U.S. District Judge Brian R. Martinotti also ordered restitution of the full amount.
“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,” wrote U.S. Attorney Philip R. Sellinger in a statement. “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.”
Khater pleaded guilty in a Newark federal court in January this year to one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS. His conspirator confessed to the same offenses in May.
This case highlights the ongoing challenge of identity theft in financial transactions, including those involving NJ online casinos, which have been legal since November 2013.
