A Southern California man was convicted for stealing over $10 million from the IRS and government through tax fraud schemes.
Stephen Jake McGonigle, 66, a Victorville resident, was found guilty of one count of conspiracy to defraud the U.S., one count of conspiracy to commit wire fraud, and one count of aggravated identity theft, according to the U.S. Attorney’s Office.
McGonigle’s years-long schemes spanned three continents and claimed more than $10 million from the IRS and dozens of state tax authorities, officials said. He worked as a tax preparer for over 10 years.
McGonigle allegedly recruited others, two of whom have since pleaded guilty, to help him carry out the schemes that began in 2013.
He sent an accomplice to Thailand to obtain fake identification documents using stolen information from identity theft victims.
He told his accomplices to use the fake IDs to secure prepaid debit cards and various commercial mailboxes across Orange County and beyond, court documents said.
After sending the prepaid debit cards to the “untraceable mailboxes,” McGonigle and his co-conspirators filed fake tax returns using the stolen Social Security numbers.
Those tax returns sought millions of dollars in refunds which were deposited into the prepaid debit cards and other bank accounts, officials said.
Investigators later tracked the IP addresses McGonigle used to file the returns to several office spaces he leased, along with an office in Costa Rica. McGonigle had hired employees to help file the fraudulent taxes at the Costa Rica office, according to court documents.
A sentencing hearing is scheduled for March 4, 2024, where McGonigle faces up to 22 years in prison. At least two of his accomplices will also be sentenced in the coming months.
