Perth Amboy Man Accused Of Obtaining $400,000 In Fraudulent Tax Refunds

NEWARK – A Perth Amboy man was arrested this morning by special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, charged with fraudulently obtaining tax refunds by filing false claims with the IRS, U.S. Attorney Paul J. Fishman announced.

Badatunde Olugbake, 55, of Perth Amboy is charged with one count of stealing government property, eight counts of filing false claims, and eight counts of mail fraud.

According to the complaint, from February 2008 through December 2010, Olugbake was allegedly involved in a scheme to file false and fraudulent tax returns in an effort to obtain tax refund checks. As part of that scheme, Olugbake is said to have deposited more than $400,000 in tax refunds into bank accounts he controlled.

Through the unauthorized use of names and Social Security numbers of unsuspecting victims, along with false addresses, statements of income, number of dependents and claims for refunds, Olugbake allegedly manipulated tax returns so that the purported claimants qualified for the Earned Income Credit. Olugbake then allegedly mailed the fraudulent returns to the IRS, which processed the false returns as if they were legitimate.

The filing false claims charge is punishable by a maximum potential penalty of five years in prison. The theft of government property charge is punishable by a maximum potential penalty of 10 years in prison, and the mail fraud charge is punishable by a maximum potential penalty of 20 years in prison. All three charges carry a potential $250,000 fine, or twice the gain or loss from the offense.

Fishman credited special agents of IRS – Criminal Investigation under the direction of Acting Special Agent in Charge JoAnn S. Zuniga; and postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Philip Bartlett, with the investigation leading to the arrest.

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