Victor Cruz, a 41-year-old resident of Bakersfield, was sentenced to 18 months in prison for his involvement in a scheme that submitted fraudulent federal income tax returns claiming $25 million in refunds. The sentencing was announced by U.S. Attorney Eric Grant.
Court documents state that between November 2019 and June 2023, Miguel Martinez, a 42-year-old Mexican national living illegally in the United States, led the operation. Martinez created fictitious businesses that reported false wage and withholding information to the IRS for non-existent employees. Using these details, he filed thousands of individual tax returns under the names of these supposed employees, seeking refunds based on the fabricated information.
Cruz’s role involved preparing and filing over 500 fraudulent tax returns—representing about 10% to 15% of all false filings attributed to Martinez. In return for his work, Cruz received several thousand dollars in fees from Martinez.
Of the $25 million claimed through fraudulent returns, the IRS paid out $2.3 million before detecting the scheme.
Martinez pleaded guilty and was sentenced to six years in prison in September 2024.
The investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney Joseph Barton prosecuted the case.
