TRENTON
– Attorney General Zulima V. Farber
and Division of Criminal Justice Director
Gregory A. Paw announced that a Paterson
man has been indicted on charges that he
stole $210,035 by fraudulently obtaining
and cashing hundreds of New Jersey tax refund
checks and homestead rebate checks.
According
to Director Paw, Mack Barden, 58, of Paterson,
was indicted Monday by a state grand jury
on charges of money laundering and theft
by deception, both second-degree offenses.
Barden was arrested last night in Lodi by
an investigator from the Division of Criminal
Justice - Major Financial Crimes Bureau
assisted by the Passaic County Sheriff's
Office.
An
investigation by the state Division of Taxation
revealed that Barden, a truck driver who
earns additional income by preparing tax
returns, submitted hundreds of fraudulent
New Jersey gross income tax returns and
homestead rebate applications between 1997
and 2005 using false names and social security
numbers. Barden allegedly submitted altered
W-2 forms with the tax returns, including
forms from his tax preparation clients.
According
to Paw, Barden allegedly obtained and cashed
418 state tax refund checks totaling $197,837
and 120 state homestead rebate checks totaling
$12,198. Each of the returns and applications
allegedly filed by Barden listed as an address
either a post office box in Haledon leased
by Barden or a mailbox in Paterson that
he leased.
“This
man allegedly saw tax season as open season
to steal from the state,” said Attorney
General Farber. “We will ensure that
he pays for his alleged crime, which was
uncovered by the Division of Taxation and
referred to the Division of Criminal Justice
for prosecution.”
“We
allege that the defendant was, in essence,
cloning taxpayers by repeatedly altering
genuine W-2 forms and attaching them to
new tax returns,” said Criminal Justice
Director Paw. “His greed caught up
with him when state officials noticed that
numerous tax refunds were going to the same
post office box.”
“Tax
fraud is a crime that victimizes all taxpayers,”
said Division of Taxation Deputy Director
Maureen Adams. “We are pleased that
our joint enforcement efforts, which are
ongoing and vigilant, resulted in this indictment.”
Barden
allegedly used white correction liquid to
alter the W-2 forms. He allegedly cashed
the checks against his personal bank accounts
or through independent check cashing agencies.
The
case was presented to the state grand jury
by Deputy Attorney General Denise Grugan.
The investigation was conducted by Auditor
Lee Roach of the Division of Taxation -
Office of Criminal Investigation.
The
indictments were handed up yesterday to
Superior Court Judge Linda R. Feinberg in
Mercer County. Crimes of the second degree
carry sentences of up to 10 years in state
prison and a criminal fine of up to $150,000.
The indictment is merely an accusation and
the defendant is presumed innocent until
proven guilty.
New
Jersey’s homestead rebates are available
to residents who are disabled or at least
65, who meet specified income restrictions,
and who pay property taxes, directly or
through rent.
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Barden Indictment
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