Date: 11-03-2020

Case Style:

Case Number: 1:18-cr-00505-RBK

Judge: Robert B. Kugler

Court: United States District Court for the District of New Jersey (Essex County)

Plaintiff's Attorney: United States District Attorney’s Office, Newark, New Jersey

Defendant's Attorney:

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Description: Newark, New Jersey criminal defense lawyer represented defendant charged with tax fraud.

Between 2015 and 2016, Kenneth Crawford Jr. and his co-conspirators promoted and sold a “mortgage recovery” tax fraud scheme in which they obtained fraudulent refunds from the IRS for their clients. Crawford promoted the scheme to individuals who were facing foreclosure or behind on their mortgage payments. He represented to them that they could extinguish their outstanding mortgage debts by filing tax forms with the IRS.

As part of the scheme, Crawford and his co-conspirators directed clients to file forms that fraudulently claimed that a substantial amount of taxes had already been withheld from them. These false claims caused the IRS to issue significant refunds to which the clients were not entitled. As a result of Crawford’s scheme, more than $2.5 million in fraudulent refunds were sought from the IRS, of which the IRS paid out more than $1.3 million. Crawford charged a fee of roughly 25 percent for each refund obtained.

When the IRS discovered the fraud and attempted to recover the previously issued refunds, Crawford provided clients with false documents to send to the IRS, directed clients to conceal from the IRS his role in filing the false returns, and advised clients to remove funds from bank accounts in their names in order to thwart IRS collection efforts.

On Dec. 17, 2019, a federal jury in Camden, New Jersey, convicted Crawford of conspiring to defraud the United States, filing false claims, and obstructing the internal revenue laws.

In addition to the term of imprisonment, U.S. District Judge Robert B. Kugler ordered the defendant to serve three years of supervised release and to pay approximately $1,393,511 in restitution to the United States.

Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Sean Green and Assistant Chief John Kane, who are prosecuting the case. He also thanked the U.S. Attorney’s Office for the District of New Jersey for its assistance and support during the investigation and prosecution of this case.

18:371 CONSPIRACY TO DEFRAUD THE UNITED STATES(DOO February 2015 - May 2016)
(1)
18:287 and 2 FALSE CLAIM TO THE UNITED STATES (DOO 8/3/2015 - 9/11/2015)
(2-10)
26:7212(a) OBSTRUCTION OF THE DUE ADMINISTRATION OF THE INTERNAL REVENUE LAWS (DOO MARCH 2016 - JUNE 2016)
(11)

Outcome: Defendant was sentenced to 78 months in prison.

Plaintiff's Experts:

Defendant's Experts:

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