Michele Beckwith Acting U.S. Attorney | U.S. Attorney for the Eastern District of California
Victor Cruz, a 40-year-old tax return preparer from Bakersfield, has admitted to his involvement in a fraudulent scheme that sought $25 million in refunds through false federal income tax returns. Acting U.S. Attorney Michele Beckwith confirmed the plea.
Court records reveal that from November 2019 to June 2023, Miguel Martinez orchestrated the scheme using stolen identities to create fictitious businesses and report fabricated wage and withholding information to the IRS. Martinez submitted numerous individual income tax returns under these stolen identities, claiming they worked for these fake entities and were owed refunds based on the falsified data. Cruz played a significant role by preparing and filing over 500 of these fraudulent returns, which sought more than $3 million in refunds. In return for his services, Cruz received thousands of dollars in fees from Martinez.
The IRS disbursed $2.3 million of the claimed $25 million before uncovering the fraud.
This investigation was conducted by IRS Criminal Investigation with Assistant U.S. Attorney Joseph Barton handling prosecution duties.
Cruz is due for sentencing on November 17, 2025, facing up to ten years in prison and a potential fine of $250,000. The final sentence will be determined by the court after considering statutory factors and Federal Sentencing Guidelines.
Martinez has already pleaded guilty and received a six-year federal prison sentence.
