Tempe man faces $1.6M federal tax fraud charge

A federal grand jury recently returned a 17-count indictment against a 52-year-old Tempe man who authorities allege defrauded the United States of more than $1.6 million.

The Arizona district of the U.S. Attorney’s Office announced Nicholas Raymond Ponce’s indictment was part of a nationwide enforcement action led by the Justice Department’s National Fraud Enforcement Division, Internal Revenue Service and Internal Revenue Service Criminal Investigation. The effort targeted tax fraud and related offenses with Arizona being a “key participant in this surge effort.”

As part of the surge, a federal grand jury last month in Phoenix indicted Ponce,  who allegedly defrauded the U.S.  by filing fraudulent quarterly tax returns on behalf of his companies, Reduce My Card, LLC and OPM Management Group, LLC and falsely claiming that he was entitled to COVID-related tax credits based on wages paid to Form W-2 wage employees, according to a release from the U.S. Attorney’s Office.

“In reality, Ponce’s companies had zero W-2 wage employees during the relevant period and he was not entitled to the tax credits,” the release stated.

Ponce was charged with three counts of filing false claims for refund and 14 counts of theft of government funds. A conviction for filing false claims for refund carries a maximum penalty of five years in prison. A conviction for theft of government funds carries a maximum penalty of 10 years in prison. Both carry up to a $250,000 fine.

Beginning in early September, federal prosecutors from 35 U.S. Attorneys’ Offices across the country jointed the National Fraud Enforcement Division’s Tax Section to participate in the department’s first-ever National Tax Enforcement Surge.

The surge of nationwide resources resulted in prosecutorial actions against 76 defendants whose alleged and proven crimes intended an estimated loss of revenue to the federal government of more than $490 million, the release stated.

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