Friday, October 12, 2012
A federal Grand Jury in Phoenix indicted him of 104 counts in January. He operated a tax preparation business called Uncle Sams Tax Service. He allegedly used stolen names and Social Security numbers of deceased individuals from California and then filed false tax returns fraudulently claiming tax refunds in the name of the deceased. Prosecutors posit that Lugo would have the fraudulent refunds delivered to him or deposited into accounts he controlled. Lugo allegedly filed approximately 34 income tax returns and claimed over $279,000 in feeral tax refund payments.
Lugo faces up to five years in prison for the false claims count and two years for the identity theft count. If convicted, he is also subject to fine and mandatory restitution. Sentencing is scheduled for January in Phoenix.
See Michael Cohn, Uncle Sams Tax Service Founder Pleads Guilty to Identity Theft, Oct. 11, 2012.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.