Opinion ID: 173627
Heading Depth: 3
Heading Rank: 1

Heading: Agent Hammond’s Investigation and Testimony

Text: IRS Special Agent Mary Hammond conducted an investigation to uncover the details of the conspiracy. Agent Hammond found that Valiente paid Felix to incorporate United Mortgage in July 1999. United Mortgage’s incorporation documents indicated that (1) United Mortgage’s principal place of business and mailing address was 6110 Southwest 92nd Avenue, Miami, Florida; (2) Felix was the company’s registered agent; (3) Valiente was the company’s incorporator and president; and (4) Valiente signed the Articles of Incorporation. Valiente’s driver’s license also contained the same address as United Mortgage’s principal place of business. Agent Hammond obtained certified copies of individual income tax returns, including 8453 Forms and Tax Return Print (“TRPRT”) 1040 Forms. Agent Hammond explained that when a return is filed electronically, the IRS also requires the individual to file an 8453 Form which includes the names and signatures of the taxpayer and tax preparer. When an 8453 Form is not filed, IRS agents have access to a TRPRT printout of the data that was filed electronically by a taxpayer. 4 The government introduced the 8453 Form and TRPRT printouts, as well as a summary chart, for the individual tax returns in this case. Agent Hammond testified that the information contained in each of the tax returns contained similar information such as: (1) each W-2 Form came from Valiente’s United Mortgage company, (2) the 1999 individual tax returns were prepared by codefendants Felix or Melendez, and (3) both Felix and Melendez falsely claimed a tax refund as United Mortgage employees. R8 at 22, 24–25, 28, 60. Agent Hammond further testified that on July 31, 2000, she served a summons on Valiente’s United Mortgage’s company requesting employee and payroll records. However, Valiente never provided those records to Agent Hammond. R8 at 27–29; R10 at 62–63. Valiente then admitted to Agent Hammond that United Mortgage did not have any employees. Id. Moreover, United Mortgage did not file any corporate tax returns or tax forms related to any employees in 1998 or 1999. Agent Hammond then concluded that all of the tax forms in this case were fraudulent including the W-2 Forms, the tax returns, and the electronic submissions. According to Agent Hammond’s testimony, each of the thirty-two tax returns was filed electronically, and each taxpayer agreed to a Refund Anticipation Loan (“RAL”) check. Agent Hammond explained that a RAL check is a 5 short-term consumer loan secured by a taxpayer’s expected tax refund. The RAL check is designed to offer customers immediate access to their income tax refund. The tax preparer has a relationship with a bank, here Household Bank, and issues a check on behalf of the bank to the taxpayer. Once the IRS advances the refund, the bank is made whole on the loan. The government introduced twenty-nine checks as well as a summary chart describing the RAL checks that were issued. While the taxpayers’ names appeared on the checks as endorsers, Valiente’s name also appeared on nine of the checks—(1) on four, her name appeared on the front as the payee and on the back as the endorser, and (2) on five, her name appeared only on the back as the endorser—which was uncommon as the check should have contained only the taxpayer’s name that appeared on the tax return. Valiente deposited eight of the nine RAL checks into her personal bank accounts—money to which she was not entitled. With regard to the ninth check, Agent Hammond testified that Valiente told her that she drove her housekeeper, Georgina Sanchez, to First Services to have Felix prepare a tax return for Sanchez. Later, Valiente drove Sanchez back to First Services to pick up the RAL check. Valiente then drove Sanchez to Check Cashing USA to cash the RAL check. Valiente told Agent Hammond that she 6 knew that all the checks were loans based on a taxpayer’s expected income tax refund from the IRS. R8 at 52–53. Agent Hammond testified that she asked Valiente about depositing the checks containing her name and signature. Valiente responded that she deposited the checks and gave some of the money to her codefendants and some to the actual taxpayer. Valiente kept the remainder for herself. With respect to the other individual tax fraud victims in this case, Valiente explained to Agent Hammond that some of the alleged taxpayers were relatives of her codefendants who did not live in Miami.2 However, Valiente could not explain who signed the checks. Instead, Valiente received the checks from Felix, Rivera, and Melendez who, incidentally, prepared all of the income tax return paperwork. Agent Hammond’s investigation also revealed that Valiente provided Felix with information about Jorge Garavito, the father of Valiente’s two children. Felix then prepared a false W-2 Form and a false income tax return for Garavito with income that he allegedly earned from United Mortgage. However, Garavito was living in Colombia at the time. Valiente signed and deposited Garavito’s RAL 2 The government also called Rosa H. Garcia-Feliciano and Annie J. Alvarez-Gonzalez, who each testified that (1) they had never traveled to Miami, (2) they never heard of or worked for United Mortgage, (3) they did not file a United States tax return in 1999, (4) they did not know Valiente, (5) they did not know that the IRS issued a refund check in each of their names, and (6) they were not aware that Valiente deposited the checks into her personal account. 7 check into her bank account.3 Agent Hammond found that the total value of the checks in this case was over $100,000, and further revealed that Valiente deposited a total of $37,002.15 into her personal bank accounts. Additionally, Agent Hammond testified that Rivera told her that she (Rivera) overheard a conversation between Valiente and Felix in which Valiente stated that she needed employees to have W-2 Forms. R10 at 76–77. Rivera also told Agent Hammond that Valiente and Felix had an agreement to prepare false tax returns and that Valiente typed United Mortgage’s false W-2 Forms at First Services.