Scammer Drains $10,000,000 From IRS in International Tax Fraud and Identity Theft Scheme: DOJ - The Daily Hodl

A scammer pleaded guilty after participating in a scheme that convinced the Internal Revenue Service (IRS) to pay out $10 million in fraudulent refunds.

Brooklyn resident Xerxes Shevar, 57, was part of a prolific international conspiracy ring involving scammers in the United States, Ghana, Nigeria and Ireland, according to the U.S. Attorney’s Office for the Western District of Pennsylvania.

The US Attorney says the conspirators obtained stolen identity info on the internet and then submitted fraudulent federal tax returns under the names of those identities. The alleged scammers also opened bank accounts in those names to receive the returns from the IRS.

One of Shevar’s co-conspirators alleges the scam ring attempted to secure around $38 million from the IRS between the tax years 2010 and 2013 and ended up receiving more than $10 million.

The scammers allegedly used stolen identities to open 3,493 bank accounts and obtain 4,563 credit cards across 443 financial institutions. In all, the scam ring allegedly victimized 11,468 individuals.

Shevar was arrested in February 2024 when he returned to the United States from Ghana. The Brooklyn resident was convicted of wire fraud conspiracy, and US District Judge Susan Paradise Baxter sentenced him earlier this month to three years of probation. The judge also ordered him to pay $290,000 in restitution.

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