A New Jersey man has been indicted for placing hundreds of telephone calls to the Internal Revenue Service’s electronic payment system in an effort to obtain credit for hundreds of millions of dollars in fictitious tax payments to the IRS that he did not actually make.
A grand jury returned an indictment on March 23, which was unsealed Wednesday, charging Derrick M. Madison of Jersey City with one count of corruptly endeavoring to obstruct the internal revenue laws and one count of theft of public money.
According to the indictment, Madison made hundreds of phone calls to the IRS trying to get credit for hundreds of millions of dollars in fraudulent tax payments and overpayments that he did not make. As part of his scheme, Madison received a U.S. Treasury check in the amount of $170,681.22 based on one of the fraudulent overpayments to the IRS, which he deposited into his bank account. He was arrested Monday.
If convicted, Madison faces up to three years in prison and a $250,000 fine on the charge of obstructing the IRS and 10 years in prison and a $250,000 fine on the theft of public money charge. A trial date has not yet been scheduled.
Acting Assistant Attorney General Ciraolo credited special agents of IRS-Criminal Investigation, who investigated the case and trial attorneys Eric Powers and Jeffrey Bender of the Tax Division, who are prosecuting the case.
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