Man sentenced to 6 years in prison for leading fraud scheme

BAKERSFIELD, Calif. (KGET) — A man residing in Bakersfield was sentenced to six years in prison for leading a $25 million tax fraud scheme against the IRS.

Officials with the Department of Justice say Miguel Martinez, 39, led the scheme to file fraudulent tax returns that claimed millions of dollars in refunds from November 2019 to June 2023.

Martinez used stolen identities to create fake businesses and information and report them to the IRS. He also used multiple people to help the scheme.

One of the people used was a former IRS tax examiner who advised Martinez on how to avoid IRS fraud detection.

According to the department, Martinez lied to government agencies at the beginning of the investigation and said he had no knowledge of tax preparation. He said he ran a party rental business and sold gold.

After searching three of Martinez’s properties, detectives found $750 thousand in fraudulent tax refund checks, multiple firearms that he legally cannot possess due to his legal status and identification cards for more than 200 people.

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