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They accuse a Dominican in NY of embezzling more than US$100 million |  AlMomento.net

They accuse a Dominican in NY of embezzling more than US$100 million | AlMomento.net

Rafael Alvarez

New York, April 16 (EFE).- A Dominican nicknamed 'El Mago' was arrested yesterday in New York, accused of helping to prepare false tax returns that cost the government 100 million dollars.

The federal prosecutor's office in 1986 charged Rafael Alvarez, founder of ATAX – with offices throughout New York – with conspiracy to defraud the United States, which carries a maximum sentence of five years in prison.

In addition, he pleaded guilty to complicity in filing false federal tax returns, attempting to interfere with the administration of the Internal Revenue Code, falsifying income and aggravated identity theft, punishable by two to three years.

Alvarez was arrested on the last day of the deadline to submit taxes to the government.

“Tax Guide”

According to authorities, Alvarez, who is of Dominican descent and has been recognized with several awards in New York for his right — they dubbed him 'The Tax Wizard' — masterminded a vast scheme to get tens of thousands of federal individuals to file false returns between 2016 and 2019 that netted his company ATAX more than $15 million in profits. Pay less to the Internal Revenue Service (IRS).

“Alvarez was so adept at falsifying his clients' tax returns that he became known as 'The Magician' for his ability to hide clients' tax burdens,” said Damian Williams, U.S. Attorney for the Southern District of New York.

90 thousand tax returns ready

According to the indictment, between 2010 and 2020, the Bronx County ATAX office prepared about 90,000 tax returns.

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Alvarez, 60, prepared tax returns for his clients and hired, supervised and directed other ATAX employees, who prepared tax returns for other clients, the indictment states.

Among others, he explained, these include false itemized tax deductions, fictitious capital losses, false business expenses and fraudulent tax credits.

Additionally, according to the prosecutor's office, Alvarez and an employee also lied to an IRS agent. EFE