TRENTON
– Attorney General Stuart Rabner and
Criminal Justice Director Gregory A. Paw
announced that a Paterson man was sentenced
to prison today for stealing $210,035 by
fraudulently obtaining hundreds of New Jersey
tax refund and homestead rebate checks.
According
to Director Paw, Mack Barden, 58, of Paterson,
was sentenced to five years in state prison
by Superior Court Judge Ernest M. Caposela
in Passaic County. Barden pleaded guilty
on Jan. 18 to second-degree theft by deception,
a charge contained in a state grand jury
indictment obtained by the Division of Criminal
Justice in July 2006. As part of the plea
agreement, Barden agreed to pay full restitution
to the New Jersey Division of Taxation.
An
investigation by the Division of Taxation
revealed that Barden, a truck driver who
earned 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 submitted altered W-2 forms
with the tax returns, including forms from
his tax preparation clients.
In
pleading guilty, Barden admitted that he
obtained and cashed 418 state tax refund
checks totaling $197,837 and 120 state homestead
rebate checks totaling $12,198. The Division
of Taxation uncovered the scheme after noticing
numerous refund checks being mailed to the
same post office box addresses leased by
Barden. Barden cashed the checks against
his personal bank accounts or through independent
check cashing agencies.
“This
defendant had a system for stealing from
the taxpayers of New Jersey,” said
Attorney General Rabner. “I’m
pleased to say that his system ran smack
into the justice system by way of Treasury’s
audit and our prosecution. Prison is the
proper sentence for this kind of theft.”
“With
this year's tax season upon us, it is important
that people know that we are vigilant in
our enforcement of New Jersey's tax laws,”
said acting Division of Taxation Director
Maureen Adams. “This sentence shows
the effect of our joint efforts on behalf
of New Jersey taxpayers.”
The
case was prosecuted by Deputy Attorney General
Denise Grugan. The investigation was conducted
by Auditor Lee Roach of the Division of
Taxation - Office of Criminal Investigation.
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