Two East Orange men are likely headed to prison after entering guilty pleas on federal fraud charges.
The suspects, a 46-year-old male and a 48-year-old male, allegedly conspired with inmates at the Essex County Correctional Facility in Newark to defraud the Internal Revenue Service (IRS). The suspects and the inmates allegedly filed false tax returns and told the IRS that the inmates were shorted on their paychecks. The suspects then received larger refund checks and divvied up the stolen money with the inmates.
According to federal prosecutors, the suspects had connections with the inmates because one of the suspects had previously done time in the Newark NJ correctional facility.
In total, the suspects allegedly got away with more than $670,000 before finally being caught.
The suspects could have faced decades in prison, but they reached a plea deal with prosecutors that will result in prison terms of just five years. The U.S. Attorney’s Office offered the favorable plea deal to the suspects in order to avoid a lengthy and costly trial.
The suspects will appear in U.S. District Court in Newark next year so that they can be officially sentenced for their fraud crimes.
For additional information about this case, read the NJ.com article, “Duo Admit Plot to Swindle IRS Out of $670K Using Fake Tax Returns from Inmates.”