Two Allentown Residents Charged in Stolen Identity Refund Fraud (SIRF) Scheme

Summary

A press release of the U.S. Attorney's Office for the Eastern District of Pennsylvania, dated Friday, May 26, 2023, announcing that Jose Baez and Jessenia Cordero of Allentown were charged by complaint with conspiracy to defraud the United States with respect to claims, conspiracy to commit aggravated identity theft and conspiracy to commit mail fraud. The complaint alleges that the two used stolen identities to file at least 316 fraudulent federal tax returns, requesting at least $1.8 million in refunds, and 168 fraudulent Pandemic Unemployment Assistance applications. According to the complaint, the returns were filed through JB Multiservices, a company owned by Baez, and over $1.4 million in PUA benefits were withdrawn at ATMs. Agents executed a search warrant at the couple's home on July 6, 2022.

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PRESS RELEASE



Two Allentown Residents Charged
in Stolen Identity Refund Fraud
(SIRF) Scheme, Pandemic
Unemployment Assistance (PUA)
Fraud, and Aggravated Identity
Theft Conspiracy
Friday, May 26, 2023


For Immediate Release
U.S. Attorney's Office, Eastern District of Pennsylvania

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jose
Baez and Jessenia Cordero, a married couple, both of Allentown, PA, were charged by
way of complaint with one count of conspiracy to defraud the United States with respect
to certain claims, conspiracy to commit aggravated identity theft, and conspiracy to
commit mail fraud, all stemming from Baez and Cordero filing fraudulent tax returns and
PUA applications with stolen identities.

The complaint alleges that Baez and Cordero used stolen identities to file at least 316
fraudulent federal tax returns and 168 fraudulent PUA applications. Baez and Cordero
filed the false returns with designated tax preparer identification numbers registered
under their name. According to the complaint, Baez and Cordero used the corporate
alter ego, JB Multiservices, a company owned by Baez, and of which Cordero was an
employee, to file the fraudulent returns. The false returns were filed using an IP address
registered to Baez at the business's location. Additionally, according to the complaint, at
least 674 false returns were filed by the IP address registered to that location by Baez,
Cordero, Person 1, and Person 2. As outlined in the complaint, per Internal Revenue
Service (IRS) records, the 316 false returns filed by Baez and Cordero requested at least
$1.8 million dollars in fraudulent tax refunds.
As also alleged in the complaint, the IP address registered to Baez at his and Cordero's
home was used to file 168 fraudulent PUA applications. After the fraudulent applications
were filed, the respective state workforce agency responsible for administering the PUA
benefits dispersed funds on the fraudulent PUA applications by mailing PUA debit cards
to addresses in Allentown and elsewhere. Over $1.4 million dollars in PUA benefits were
withdrawn at ATMs on the cards. PUA debit cards were also issued under Baez and
Cordero's names and mailed to an Allentown address. The PUA debit cards issued under
the names of Baez and Cordero were often used at ATMs immediately before or after
PUA debit cards were issued on other applications filed with stolen identities.

As alleged in the complaint, during a July 6, 2022 search warrant, that was executed
pursuant to a federal search warrant issued in the Eastern District of Pennsylvania of
Baez and Cordero's home, federal agents recovered lists of identities and documents
that were used to file the fraudulent tax returns and PUA applications.

The case was investigated by the Federal Bureau of Investigation's Allentown Resident
Agency, the Internal Revenue Service – Criminal Investigation, and the Department of
Labor's Office of the Inspector General, and is being prosecuted by Assistant United
States Attorneys Timothy M. Lanni and Mary A. Futcher.

An indictment, information, or criminal complaint is an accusation. A defendant is
presumed innocent unless and until proven guilty.

Persons with information about allegations of attempted fraud involving COVID-19 can
report it by calling the Department of Justice's National Center for Disaster Fraud
Hotline at 866-720-5721 or via the NCDF Web Complaint Form
at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form

Updated May 26, 2023

Component
USAO - Pennsylvania, Eastern


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