News from New York State Department of Taxation and Finance

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Bronx Man Charged In Tax Refund Scheme

Submits False Claims For More Than 100 Phony Refunds

ALBANY, NY (04/28/2008; 1636)(readMedia)-- New York State Commissioner of Taxation and Finance Robert L. Megna today announced that a Bronx man has been arrested for creating fake social security numbers and using them to file false claims for state tax refund checks.

Alcides Negron, 39, of 1512-14 Townsend Avenue, used the phony social security numbers to file more than 100 fake tax refunds that claimed New York City school tax and New York State property tax credits.

A Bronx check casher became suspicious when Negron tried to cash multiple New York State tax refund checks. The teller notified the New York City Police Department, which in turn called in state tax agents and agents from the Social Security Administration Inspector General’s Office.

It was determined that Negron submitted false refund claims in his own name or the name of a friend, using many social security numbers, and often claimed four years of credits under a single social security number.

According to the complaint, Negron pursued his scheme during 2007 and 2008, obtaining five or six checks every two weeks and cashing them himself. He is charged with one count each of third degree Grand Larceny and second degree Criminal Possession of a Forged Instrument, both Class D felonies, carrying a maximum of seven years imprisonment. Negron was also charged with one count each of first degree Offering a False Instrument for Filing and Falsifying Business Records, both Class E felonies, carrying a maximum term of four years imprisonment.

The New York City School Tax Credit allows a credit of $145 to any individual ($290 to a married couple filing jointly) who lived in New York City for the entire year and was not claimed as a deduction on anyone’s return. The Real Property Tax Credit is available for certain New York State homeowners and for renters whose rental cost is under $450 per month and have annual incomes under $18,000. The credit normally does not exceed $75 but, for those over 65, as the defendant falsely claimed on some of his applications, the credit can be as great as $375.

Commissioner Megna thanked the NYPD, the Social Security Administration Inspector General’s Office and the Bronx County District Attorney Robert Johnson for their work on this case.

The Tax Department investigation was conducted by Investigators George Bean and Rebecca Garcia of the Department’s Special Investigations Unit under the supervision of Chief Investigator Cheryl Holland. Police Officer Miguel Alvarez and SSA Special Agent Robert Lupo, under the direction of Edward J. Ryan, special agent in charge, conducted the investigations for their respective departments. Assistant District Attorney Ann Marie Cherry of the Arson/Economic Crimes Bureau handled the case for the Bronx District Attorney’s Office.

The defendant is presumed to be innocent unless and until proven guilty.

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