Fake IRS Officer Ran a $1.8M Tax Fraud Scheme Targeting a Specific Type of Homeowners

A Mexican national was sentenced to four years in prison after he pretended to be an Internal Revenue Service (IRS) officer to commit a tax fraud of $1.8 million.

Francisco Ivan Velazquez was sentenced in Las Vegas after prosecutors argued that he operated a tax fraud scheme that targeted vulnerable homeowners in Nevada and beyond. According to a recent DOJ report, the government initially recommended a sentence of 96 months in prison, but he was ultimately sentenced to 48 months. Velazquez was convicted on multiple fraud-related charges after his tax fraud scheme allegedly sought at least $1.8 million from the IRS. Reportedly, he targeted people who were struggling financially and gave them hope that he could help them recover a huge amount of money from the IRS under a supposed IRS foreclosure relief program that did not actually exist. Most of these victims were non-native English speakers. First Assistant United States Attorney Sigal Chattah for the District of Nevada said:

"The defendant pretended to be an IRS agent and preyed on victims – many of whom were non-native English speakers – who struggled to pay their home mortgages."

"He exploited his victims' financial vulnerabilities and stole hard-earned money from over a dozen victims."

According to the court documents, Velazquez told the victims that under a new program, homeowners who had previously lost their property to foreclosure could recover large sums of money from the IRS. He told them all they had to do was file some paperwork, and their request would be approved. Prosecutors stated that after making false claims, he then charged his victim a fee to prepare and submit these fake documents for an entirely fictitious program. In some cases, the fake IRS officer also assisted his victims in submitting false tax returns, claiming more than $100,000 in federal tax withholding, to secure fraudulent refunds. The case eventually went on trial, where Velazquez was convicted by a jury on November 17, 2025, on six federal counts. Of these six, three counts were for wire fraud, two for impersonating an IRS officer, and one for aiding in the presentation of a false tax return. U.S. District Judge Jennifer A. Dorsey also ordered Velazquez to pay nearly $200,000 in restitution to victims affected by the scheme. The exact restitution amount is approximately $199,198.52. The investigation was conducted by the IRS Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA). Trial Attorneys Thomas W. Flynn and John C. Gerardi from the Justice Department's Criminal Division prosecuted the case with assistance from the U.S. Attorney's Office for the District of Nevada. Federal investigators highlighted how fraudsters and scammers continue to misuse the IRS name to gain trust and pressure victims into giving money. Phoenix Field Office Acting Special Agent in Charge Scott Brown said:

"This case serves as a reminder of the lengths fraudsters will go to exploit vulnerable individuals for their own financial gain.

"By inventing fake government programs and impersonating IRS officials, Velazquez built a false sense of trust to steal hard-earned money from unsuspecting victims. The IRS will never charge an upfront fee to process a form or secure a refund, nor do we make initial contact with taxpayers via social media or unsolicited text messages."

The sentencing comes weeks after the DOJ announced the launch of its National Fraud Enforcement Division on April 7. The division helps in strengthening investigations and prosecutions involving fraud against Americans and also supports President Donald Trump's Task Force to Eliminate Fraud.