Newark Reporter

An Arizona man, Walid Khater, has been sentenced to 49 months in prison for his role in a scheme to defraud the Internal Revenue Service (IRS) of over $4.4 million. The announcement was made by U.S. Attorney Philip R. Sellinger.

Khater, aged 38 and a resident of Mesa, Arizona, had previously admitted guilt before U.S. District Judge Brian R. Martinotti. He faced charges of conspiracy to commit wire fraud and conspiracy to defraud the IRS. His co-conspirator, Omar Khater, aged 33 from Fairfield, New Jersey, also pleaded guilty to similar charges and received a sentence of 57 months on June 12, 2024.

The court documents and statements revealed that the two men were relatives who collaborated with others in stealing identities to file fraudulent tax returns and secure tax refunds unlawfully from the IRS. They falsely reported income or gambling winnings for taxpayers without their knowledge or consent, leading to undeserved refund payments from the IRS.

These fraudulent activities resulted in the IRS disbursing $4.49 million in tax refunds directed into various bank accounts controlled by the Khaters and their accomplices.

Apart from his prison sentence, Walid Khater will serve three years under supervised release and must pay restitution amounting to $4.49 million as ordered by Judge Martinotti.

U.S. Attorney Sellinger acknowledged the efforts of special agents from IRS-Criminal Investigation's Newark Field Office under Acting Special Agent in Charge Jenifer L. Piovesan and FBI-Newark led by Acting Special Agent in Charge Nelson I. Delgado for their investigative work leading to this sentencing decision. Additionally, appreciation was extended to the NJ Transit Police for their assistance.

The case is being prosecuted by Assistant U.S. Attorneys Fatime Meka Cano from the Economic Crimes Unit and Katherine M. Romano from the Health Care Fraud Unit based in Newark.