DOJ: Mexican Citizens Charged in a Fraudulent Tax Scheme

• The defendants used fraudulent Mexican identification documents to obtain ITINs and filed false tax returns, resulting in over 16,000 refund checks cashed.
• Two defendants also face charges for making false statements on immigration forms, with maximum penalties of 20 years per count.

Three individuals residing in Atlanta, all Mexican citizens, were indicted for orchestrating a scheme involving fraudulent Mexican identification documents to obtain ITINs and file false tax returns. The IRS mailed ITIN letters and refund checks to post office boxes controlled by the defendants, who then cashed more than 16,000 U.S. Treasury refund checks worth over $74 million.

Gustavo Rojano Salazar and Gabriel Rojano Salazar are additionally charged with making false statements on immigration forms. The investigation is being conducted by IRS Criminal Investigation, U.S. Postal Inspection Service, and Homeland Security Investigations, with prosecution led by the DOJ’s Fraud Division and the Northern District of Georgia.

• $74 million Total value of fraudulent tax refund checks cashed
• 16,000 Number of U.S. Treasury tax refund checks cashed
• 20 years Maximum penalty per count for fraud and money laundering charges

• Review ITIN issuance and refund check processes for patterns matching the fraudulent use of Mexican identification documents described in the DOJ indictment.
• Screen for multiple refund checks mailed to post office boxes controlled by single entities, as highlighted in the scheme.
• Monitor check cashing company transactions for unusually high volumes of U.S. Treasury refund checks linked to ITIN holders.

This case highlights vulnerabilities in the IRS ITIN issuance and tax refund processes, which were exploited using fraudulent identification documents and post office boxes. The scale—over $74 million and 16,000 checks—demonstrates the need for robust controls and monitoring of refund disbursements, especially involving ITIN holders. Compliance officers must be alert to similar typologies, as such schemes can facilitate large-scale money laundering and fraud, undermining the integrity of federal benefit programs and tax systems.