Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that YESSENIA JIMENEZ, an officer in the New York City Police Department (“NYPD”), was found guilty today of conspiring to distribute heroin, fentanyl, and cocaine, possession of heroin and fentanyl, and using a firearm in furtherance of drug trafficking.  A unanimous jury convicted JIMENEZ on all three counts after a one-week trial before United States District Judge Valerie E. Caproni. 

U.S. Attorney Geoffrey S. Berman said:  “As proven at trial, Yessenia Jimenez, an NYPD officer, trafficked heroin, fentanyl, and cocaine in New York City, a city she took an oath to serve and protect, and used her NYPD service firearm to carry out her drug dealing.  Simply put, Jimenez was a drug dealer in a cop’s uniform.  Thankfully, Jimenez now stands convicted and faces at least 15 years in prison.”

According to court documents and the evidence at trial:

This case arises from a Drug Enforcement Administration (“DEA”) investigation into a large-scale narcotics trafficking operation that brought heroin, fentanyl, and cocaine across the border from Mexico into the United States, and then into New York City.  From at least June 2017 through March 2018, JIMENEZ, an NYPD officer, participated in the conspiracy.  JIMENEZ used her apartment in the Bronx, New York, to store multiple kilograms of heroin, fentanyl, and cocaine that were brought into the city by other members of the conspiracy.  Along with other co-conspirators, JIMENEZ distributed these drugs in New York and also in the Boston area.  Over the course of the conspiracy, she collected hundreds of thousands of dollars in drug profits, which she also stored in her apartment, and delivered large amounts of cash to other co-conspirators to bring back to drug suppliers in Mexico.  On March 13, 2018, the DEA and NYPD apprehended JIMENEZ and a co-conspirator as they returned to her apartment carrying approximately $52,000 in U.S. currency, which represented the proceeds from narcotics transactions in Boston.  JIMENEZ, who was not in uniform and was off duty, was carrying her loaded NYPD service firearm in her purse, alongside approximately $25,000 of the drug proceeds.  At the time of her arrest, JIMENEZ lied to law enforcement, telling them she was “on the job,” meaning on official NYPD business at the time.  Following the arrest, law enforcement agents obtained a search warrant for JIMENEZ’s apartment and discovered approximately 250 grams of heroin and fentanyl.

*                      *                     *

JIMENEZ, 32, of the Bronx, New York, was convicted of one count of conspiracy to distribute at least one kilogram of heroin and fentanyl, and at least five kilograms of cocaine, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison, one count of possession of at least 100 grams of heroin and fentanyl with intent to distribute, which carries a maximum sentence of 40 years in prison and a mandatory minimum sentence of five years in prison, and one count of using a firearm in furtherance of narcotics trafficking, which carries a maximum sentence of life in prison and a consecutive mandatory minimum sentence of five years in prison.  The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. 

Mr. Berman praised the investigative work of the DEA, NYPD, and New York State Police in this investigation.

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Thane Rehn and Louis Pellegrino are in charge of the prosecution.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James D. Robnett, Special Agent in Charge, Internal Revenue Service-Criminal Investigations (“IRS-CI”), announced charges today against nine individuals for their participation in a long-running scheme to file thousands of fraudulent tax returns using the stolen identities of children, resulting in millions of dollars in estimated loss to the United States Treasury.  Eight of the defendants were arrested this morning and will be presented before U.S. Magistrate Judge Barbara C. Moses today.  MARCOS DE JESUS PANTALEON remains at large.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As alleged, these defendants used their experience as tax preparers to skirt U.S. tax laws by using the stolen identities of children to help increase their clients’ tax returns.  All told, the defendants’ years’ long scheme resulted in tens of millions of dollars in questionable credits.  Now the defendants’ businesses are shut down – literally – and the defendants face significant time in prison for tax fraud.”

IRS-CI Special Agent in Charge James D. Robnett said:  “Stealing the identities of children to file false tax returns is reprehensible.  These individuals allegedly demonstrated a blatant disregard of the integrity of the United States tax system and caused immeasurable hardship to innocent victims.  IRS-CI special agents are determined to investigate these crimes and protect the honest taxpayers.”

According to the allegations in the Complaint[1] unsealed this morning and information in the public record:

Under federal law, taxpayers may be entitled to claim certain tax credits, including the Earned Income Tax Credit (“EITC”) available to qualifying low and moderate income working individuals and families.  If the individual claims the EITC based on having a child, the individual must list the name and Social Security Number (“SSN”) of the child on his or her tax return, along with completing a separate schedule that contains the child’s name, SSN, year of birth, relationship to the taxpayer, and how many months the child lived with the taxpayer during the tax year.

Starting in 2009, and continuing for multiple years, ARIEL JIEMENEZ, a/k/a “Melo,” IRELINE NUNEZ, ANA YESSENIA JIMENEZ, EVELIN JIMENEZ, LEYVI CASTILLO, CINTHIA FEDERO, GUILLERMO ARIAS MONCION, MARCOS DE JESUS PANTALEON, a/k/a “Junior,” and JOSE CASTILLO, a/k/a “Jairo,” abused the EITC program with their knowledge of the tax system by using the stolen identities of numerous children to file thousands of fraudulent tax returns for their clients.  These clients were not supporting, residing with, or related to the children they claimed as a dependent.  Rather, they paid the defendants between $1,000 and $1,500 for each child falsely added to their returns.  The inclusion of these false dependents allowed clients to claim tax refunds they were not entitled to, chiefly the EITC.

All of the defendants initially worked together at the same tax-preparation business.  In approximately 2013, MONCION, PANTALEON, and JOSE CASTILLO started their own tax-preparation business.  In approximately 2014, JOSE CASTILLO left to start his own, third tax-preparation business.  All three businesses engaged in the same conduct of possessing stolen identities of children and adding those identities to clients’ tax returns in exchange for a fee.

The tax returns filed by the defendants’ associated businesses indicate markedly high rates of returns seeking the EITC.  For example, for returns filed from tax year 2010 through 2017, between 56 percent and 74 percent of all returns prepared by the defendants’ businesses claimed the EITC.  In contrast, between 34 percent and 39 percent of all tax returns filed in the Bronx, New York, and between 18 percent and 21 percent of all tax returns filed nationwide for the same time period sought the EITC.

In total, between 2009 and the present, the returns filed by the defendants’ businesses claimed more than $44 million in the EITC.

In addition to the fraud described above, EVELIN JIMENEZ, LEYVI CASTILLO, FEDERO, MONCION, and JOSE CASTILLO each fraudulently claimed dependents on their own personal tax returns.

*                      *                      *

A chart listing the defendants, and the charges and maximum penalties they face is attached.  The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.  

Mr. Berman praised the outstanding investigative work of IRS-CI.  He also thanked the New York City Department of Investigation for its assistance.

This case is being handled by the Office’s General Crimes Unit.  Assistant United States Attorneys Daniel G. Nessim, Ni Qian, and Daniel C. Richenthal are in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

                                                          



Defendant

 





Charges

 





Maximum Penalties





Ariel Jimenez, a/k/a “Melo” (34, of New York, New York)





Conspiracy to defraud the United States with respect to claims

 

Conspiracy to commit wire fraud

 

Aggravated Identity Theft

 





32 years in prison

 

Mandatory minimum of two years in prison to be imposed consecutively to any other sentence





Ireline Nunez (36, of New York, New York)





Conspiracy to defraud the United States with respect to claims

 

Conspiracy to commit wire fraud

 

Aggravated Identity Theft

 





32 years in prison

 

Mandatory minimum of two years in prison to be imposed consecutively to any other sentence





Ana Yessenia Jimenez (36, of New York, New York)





Conspiracy to defraud the United States with respect to claims

 

Conspiracy to commit wire fraud

 

Aggravated Identity Theft

 





32 years in prison

 

Mandatory minimum of two years in prison to be imposed consecutively to any other sentence





Evelin Jimenez (32, of New York, New York)





Conspiracy to defraud the United States with respect to claims

 

Conspiracy to commit wire fraud

 

Aggravated Identity Theft

 

Subscribing to a false return

 





35 years in prison

 

Mandatory minimum of two years in prison to be imposed consecutively to any other sentence





Leyvi Castillo (35, of New York, New York)





Conspiracy to defraud the United States with respect to claims

 

Conspiracy to commit wire fraud

 

Aggravated Identity Theft

 

Subscribing to a false return

 





35 years in prison

 

Mandatory minimum of two years in prison to be imposed consecutively to any other sentence





Cinthia Federo (31, of New York, New York)





Conspiracy to defraud the United States with respect to claims

 

Conspiracy to commit wire fraud

 

Aggravated Identity Theft

 

Subscribing to a false return (two counts)

 





38 years in prison

 

Mandatory minimum of two years in prison to be imposed consecutively to any other sentence





Guillermo Arias Moncion (32, of New York, New York)





Conspiracy to defraud the United States with respect to claims (two counts)

 

Conspiracy to commit wire fraud (two counts)

 

Aggravated Identity Theft

 

Subscribing to a false return (four counts)

 





74 years in prison

 

Mandatory minimum of two years in prison to be imposed consecutively to any other sentence





Marcos De Jesus Pantaleon, a/k/a “Junior” (28, of New York, New York)





Conspiracy to defraud the United States with respect to claims (two counts)

 

Conspiracy to commit wire fraud (two counts)

 

Aggravated Identity Theft

 





62 years in prison

 

Mandatory minimum of two years in prison to be imposed consecutively to any other sentence





Jose Castillo, a/k/a “Jairo” (42, of New York, New York)





Conspiracy to defraud the United States with respect to claims (three counts)

 

Conspiracy to commit wire fraud (three counts)

 

Aggravated Identity Theft

 

Subscribing to a false return





95 years in prison

 

Mandatory minimum of two years in prison to be imposed consecutively to any other sentence



 

 



[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.