Victor Cruz, a 40-year-old tax return preparer from Bakersfield, has pleaded guilty to his involvement in a $25 million fraud scheme. The announcement was made by Acting U.S. Attorney Michele Beckwith.
Court records reveal that between November 2019 and June 2023, Miguel Martinez led the operation, which involved filing fraudulent tax returns claiming millions in refunds. Martinez used stolen identities to fabricate businesses and report false wage and withholding information to the IRS. Subsequently, he filed individual income tax returns for these identities, claiming they worked for the fake businesses and were entitled to refunds.
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 the scheme was uncovered. This investigation is credited to IRS Criminal Investigation, with Assistant U.S. Attorney Joseph Barton prosecuting the case.
Cruz’s sentencing is set for November 17, 2025. He faces up to 10 years in prison and a fine of $250,000; however, the final 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.
