Skokie Man Led International Tax Fraud Scheme

SKOKIE, Ill. - A Skokie man has been sentenced to 85 months in prison and ordered to pay $1.6 million in restitution after directing more than 20 federal income tax refunds to his homeland in Romania, authorities said on Monday.

Ovidiu Isac, 31, of Skokie, claimed refunds in the names of Romania citizens who had visited the U.S. on exchange student visas, authorities said. Isac will be subject to deportation after completing his sentence in the U.S.

At least 470 false tax returns, typically claiming refunds between $4,000 and $7,000, were filed and resulted in a loss of more than $1.6 million to the U.S. Treasury during the conspiracy that spanned three tax years between 2007 and 2009.  The returns were filed in the names and social security numbers of individuals who had previously traveled to the United States on temporary student visas and had filed tax returns in the past, but who were likely no longer living in the U.S. nor filing a real return in their own name, the Department of Justice said on Monday. 

Isac led and organized the co-conspirators in Chicago and controlled the flow of money to his co-conspirators in Romania.  On one occasion, Isac led a group of co-conspirators in physically attacking a group of individuals who were associated with someone who refused to pay Isac his cut of the proceeds, according to the Department of Justice.

All in all, 24 defendants were indicted in July 2010 for their involvement in the scheme, authorities said. Of those, 19 have been sentenced while the other five are now fugitives.

Evidence in two companion cases showed that the fraudulent returns typically claimed large deductions for moving expenses, and the fraud was concealed by electronically submitting false wage and tax statements.  The returns were filed in the names of real individuals and employers who were likely unaware that their identities and information were being misused, authorities said. 

At least 200 bank accounts in the names of more than 75 individuals were used to receive and obtain the tax refund money triggered by the fraudulent returns.

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