Victor Cruz, a tax return preparer from Bakersfield, has admitted to his involvement in a $25 million fraud scheme. Acting U.S. Attorney Michele Beckwith announced the guilty plea. Cruz collaborated with Miguel Martinez, an illegal Mexican national in the United States, who orchestrated the submission of fraudulent federal income tax returns.
Court records reveal that from November 2019 to June 2023, Martinez led a plot to file thousands of fake tax returns claiming millions in refunds. He used stolen identities to fabricate businesses and report false wage and withholding information to the IRS. Martinez filed numerous individual income tax returns under these stolen identities, asserting that these individuals were owed refunds based on fictitious wages.
Cruz played a significant role by preparing and filing over 500 fraudulent tax returns, seeking more than $3 million in refunds. In return for his services, he received substantial fees from Martinez. The IRS disbursed $2.3 million out of the claimed $25 million in fraudulent refunds.
The case was investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Joseph Barton. Cruz’s sentencing is set for November 17, 2025. He could face up to 10 years in prison and a $250,000 fine; however, the actual sentence will be determined by the court based on statutory factors and Federal Sentencing Guidelines.
Martinez has already pleaded guilty and received a six-year federal prison sentence.
