TRENTON
—Attorney General Peter C. Harvey
and State Treasurer John E. McCormac today
announced that a joint-agency tax fraud
investigation targeting the theft of tens-of-thousands
of dollars from the state treasury has
resulted in the indictment of an Essex
County tax preparer on charges of filing
hundreds of fraudulent New Jersey State
Income Tax Returns which resulted in unentitled
refunds being issued in the names of fictitious
“taxpayers.” The investigation
uncovered the filing of nearly 400 purportedly
fraudulent New Jersey tax returns claiming
more than $265,397 in unentitled refunds
from the New Jersey Earned Income Tax
Credit Program.
“This
indictment charges that the defendant
devised an elaborate tax fraud scheme
that resulted in the theft of tens-of-thousands
of dollars from the state treasury through
the filing of hundreds of fraudulent tax
returns. The prosecution of this defendant
demonstrates the resolve and forward thinking
by the Division of Criminal Justice and
the Division of Taxation as they undertake
concerted efforts to target those who
attempt to steal or cheat the treasury,”
said Attorney General Harvey.
Vaughn L. McKoy, Director, Division of
Criminal Justice and Robert K. Thompson,
Director, Division of Taxation, said that
Ramoni Mustapha, 50, 221, Custer Ave.,
Newark, Essex County, Blessing Iwarimie,
35, 511 North Ave., Elizabeth, Union County,
and Gladys Soto, 31, 1131 Monmouth Ave.,
Linden, Middlesex County, were charged
in the indictment with conspiracy and
theft by deception. Each defendant faces
up to 20 years in state prison and fines
of up to $300,000 upon conviction of the
second degree charges.
The indictment alleges that Mustapha,
a self-employed tax preparer and the owner/operator
of Ramsalam Business and Tax Consultancy
and/or The Ramsalam Group located at 105
South Day St., Orange, Essex County, fraudulently
received hundreds of New Jersey Earned
Income Tax Credit checks for the tax years
2001, 2002, and 2003. The Division of
Taxation - Office of Criminal Investigations
(OCI) determined that the purported fraudulent
returns were filed from Feb. 8, 2004 through
March 17, 2005. As a result of the fraudulent
filings, 401 Earned Income Tax Credit
(EITC) refund checks totaling $265,397
were issued to Mustapha. A review by OCI
determined that all of the fraudulent
returns contained identical taxpayer data.
The State Grand Jury indictment charges
that Mustapha prepared and filed the fraudulent
state income tax returns based on false
identifying information which qualified
the “taxpayer” for an unentitled
refund of up to $725.00 using the EITC.
The EITC gives taxpayers a New Jersey
refund based on the percentage of money
refunded on the federal tax return. In
order to claim the EITC, individuals must
meet certain criteria, including filing
a federal EITC, have at least one qualifying
child listed on the Federal EITC Schedule,
have New Jersey gross income of $20,000
or less, and have the same filing status
on both the state and federal tax returns.
The indictment further charges that Iwarimie
and Soto, employed as bank tellers at
The Bank of America in Raritan and Newark
respectively, cashed the EITC refund checks
obtained by Mustapha in exchange for a
portion of the proceeds.
“I
credit this indictment to the close working
relationship between Taxation’s
Office of Criminal Investigation and the
Division of Criminal Justice,” said
Director Thompson. “Thanks to their
hard work, we are identifying and prosecuting
anyone who believes they can beat the
system. These joint efforts are continuing.”
Criminal Justice Director McKoy noted
that Mustapha was arrested on April 15
at his Orange office by State Investigators
from the Division of Criminal Justice
- Financial Crimes Bureau and tax agents
from the Division of Taxation - Office
of Criminal Investigations. In conjunction
with Mustapha’s arrest, the state
law enforcement agents conducted a search
of Mustapha’s office pursuant to
a court authorized search warrant issued
by Mercer County Superior Court Judge
Charles A. Delehey. As a result of the
search warrant, State Investigators confiscated
and seized tax returns, various tax documents
and records, computer systems, false/fraudulent
credit cards and identification documents,
and related evidence.
The indictment was returned to Mercer
County Superior Court Judge Neil H. Shuster
on Aug. 17. Each of the defendants will
be issued a complaint summons to appear
in Mercer County Superior Court for arraignment
and bail. After arrest, Mustapha was released
from the Mercer County Jail after posting
$100,000 bail. An indictment represents
a charge. The defendants are presumed
innocent until proven guilty in a court
of law.
Chief Investigator Susan Kane of the Division
of Taxation - Office of Criminal Investigation
coordinated the investigation in conjunction
with State Investigator Eric Ludwick,
Division of Criminal Justice - Financial
Crimes Bureau, Assistant Chief Bob Morris
of the Division of Taxation’s Office
of Criminal Investigation, and OCI Auditor
Thaedra F. Chebra. Supervising Deputy
Attorney General Terrence Hull and Deputy
Attorney Denise Grugan of the Division
of Criminal Justice - Financial Crimes
Bureau prosecuted the case.
Additional information is available via
the Division of Criminal Justice Web site
at www.njdcj.org.
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