California Tax Preparer Admits Helping Illegal Alien Steal Millions From IRS

In yet another example of the chaos caused by unchecked illegal immigration and weak enforcement, a California tax preparer has admitted to playing a central role in a massive tax fraud operation orchestrated by an illegal alien.

Victor Cruz, 40, of Bakersfield, pleaded guilty on Monday to helping Miguel Martinez, a Mexican national who was in the U.S. illegally, submit over 500 fraudulent tax returns in a scheme that attempted to swindle the IRS out of $25 million in bogus refunds, according to the Department of Justice.

Martinez used stolen identities to create fake businesses, then reported phony wages and withholdings tied to those entities. Using those false records, he filed hundreds of tax returns, claiming refunds on behalf of people who never worked for the businesses because the businesses didn’t exist.

Cruz, a licensed tax preparer, filed more than 500 of those fraudulent returns between 2019 and 2023, pocketing thousands of dollars in kickbacks from Martinez in the process. Prosecutors say the IRS was defrauded out of $2.3 million in actual payouts before the scheme was uncovered.

Key facts:

• Martinez is an illegal immigrant who used identity theft and fraudulent filings to target the IRS.

• Cruz, a U.S.-based tax preparer, enabled the scheme and was paid directly for his role.

• The IRS paid out $2.3 million before catching the scam, and $25 million in total refunds were attempted.

Martinez has already pleaded guilty and is now serving a 6-year prison sentence. Cruz faces up to 10 years in prison and a $250,000 fine when he is sentenced on November 17, 2025.

This case highlights a disturbing pattern: illegal aliens exploiting the U.S. system not just by entering unlawfully, but by manipulating financial institutions, stealing identities, and draining taxpayer dollars with the help of complicit Americans.

It also raises serious questions about the effectiveness of IRS safeguards and why someone here illegally was able to carry out such an extensive operation for nearly four years. More troubling still is the fact that this only came to light after millions were already lost.

The Biden-era culture of lax enforcement and sanctuary policies has made these crimes easier to execute and harder to detect. Under President Trump, such schemes are being aggressively rooted out but the rot runs deep.

The DOJ’s success in this case is commendable, but the lesson should be crystal clear: until we enforce our immigration laws, America will remain vulnerable to financial exploitation, identity theft, and organized criminal fraud.

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