DOJ: Three Mexican Men Charged in $74 Million Tax Refund Scheme

• The defendants allegedly filed hundreds of fraudulent tax returns using ITINs obtained with Mexican identification documents, resulting in more than 16,000 refund checks.
• The funds were laundered by cashing the checks at a north Georgia check cashing business and receiving bulk cash.

According to the DOJ, Gustavo Rojano Salazar, Gabriel Rojano Salazar, and Andres Huerta Rendon were arrested and charged with mail and wire fraud conspiracy, mail fraud, and conspiracy to commit concealment money laundering for allegedly orchestrating a scheme that stole over $74 million from the U.S. Treasury. The defendants allegedly used Mexican identification documents to obtain ITINs, filed fraudulent tax returns, and received more than 16,000 refund checks.

The fraudulent refunds were mailed to P.O. boxes controlled by the defendants, who then laundered the proceeds by cashing the checks at a north Georgia check cashing business. The case is being investigated by IRS Criminal Investigation, the U.S. Postal Inspection Service, and Homeland Security Investigations, with prosecution led by the Northern District of Georgia and the National Fraud Enforcement Division.

• $74 million total amount stolen
• 16,000 tax refund checks received

• Review all ITIN-related tax filings for patterns similar to those described in the DOJ case against Gustavo Rojano Salazar, Gabriel Rojano Salazar, and Andres Huerta Rendon.
• Scrutinize refund checks sent to P.O. boxes and bulk cash transactions at check cashing businesses in north Georgia for links to the described typology.
• Cross-check immigration applications for false statements regarding criminal history, as highlighted in the charges against Gustavo and Gabriel Rojano Salazar.

This case highlights the vulnerability of the U.S. tax system to identity-based refund fraud and large-scale money laundering. The use of ITINs obtained with foreign identification, the filing of hundreds of fraudulent returns, and the laundering of over $74 million through check cashing businesses demonstrate sophisticated exploitation of government programs. Compliance officers must be vigilant for similar patterns, especially involving bulk refund checks, P.O. box addresses, and cross-border identity documents, to prevent and detect large-scale financial crimes.