April 26 2016
Federal authorities have arrested seven people charged in an identity theft and international money-laundering scheme that netted $14 million in fraudulently obtained federal income tax refunds, the government said.
The criminal complaints were filed April 19 in United States District Court in Santa Ana and unsealed last week, said the U.S. Department of Justice.
The seven arrested were part of a 10-member group, which authorities believe operated the ring.
At least seven of the suspects are from the San Fernando Valley.
The Internal Revenue Service has identified about 7,000 fraudulent tax returns related to the scheme that sought about $38 million in refunds, authorities said.
The IRS issued about $14 million in refunds and the money was deposited into and laundered through bank accounts, the government said.