Justice Department unveils nationwide tax fraud crackdown with 76 defendants

WASHINGTON, D.C. — The U.S. Department of Justice has announced a nationwide crackdown on tax fraud involving 76 defendants and more than $490 million in estimated losses to the government.

The six-week National Tax Enforcement Surge ran from early September through Oct. 14. It brought together 35 U.S. Attorneys’ Offices, the Justice Department’s National Fraud Enforcement Division and IRS Criminal Investigation.

Prosecutors filed 23 new charging actions against 31 defendants, covering about $350 million in alleged losses. Another 45 defendants were involved in trials, guilty pleas or sentencings tied to nearly $140 million.

The cases include unpaid employment taxes, false claims for COVID-era sick leave and Employee Retention Credits, fraudulent fuel tax credits, a refund scheme involving more than 16,000 cashed checks, and a trust tax shelter alleged to have cost more than $200 million.

“Every dollar stolen through tax fraud is a dollar taken from the American people,” Attorney General Todd Blanche said. The department said it plans to expand its investigations. Charges are allegations, and defendants are presumed innocent unless proven guilty in court.