Roswell Man Sentenced for Conspiracy to Steal U.S. Tax Return Money

United States District Judge Orinda D. Evans sentenced Jacinto Padron, Jr., 52, of Roswell today to serve two years in a federal prison for participating in a conspiracy to steal U.S. tax return money.          

"When a bank employee with access to accounts and authority to override security measures decides to turn to crime, the result is too often a significant loss that goes undetected for too long," said United States Attorney Sally Quillian Yates. "This defendant used his authority as a branch manager to open dozens of bogus accounts where over $200,000 in fraudulent federal tax refunds were deposited. As today’s prison sentence shows, we remain committed to rooting out corrupt bank insiders – at all levels – because they can do so much damage to the banks and customers who depend on them."          

Padron, a branch manager for Wachovia (now Wells Fargo) in Atlanta, was sentenced to two years in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $276,344.70.

According to Quillian Yates, beginning in 2009, Padron participated in a conspiracy to negotiate fraudulent checks and receive fraudulent wire transfers at the branch where he worked. He opened numerous bank accounts at Wachovia in various names and addresses supplied by his co-conspirators. The names and personal identifying information supplied by the co-conspirators belonged to residents of Puerto Rico, including prisoners incarcerated there.  After Padron opened the accounts, the co-conspirators filed fraudulent tax returns in those same names and then arranged to have the tax refunds wired to the bogus accounts or cashed the tax refund checks at Padron’s branch.  When bank security flagged or froze one of the bogus accounts because of the suspicious activity,Padron  used his managerial position to override bank security measures and permit the accounts to be opened and the proceeds to be withdrawn. The co-conspirators paid Padron a portion of the fraud proceeds for his role in the conspiracy. The conspiracy involved over $200,000 in fraudulent federal tax returns.     

Padron was convicted of the conspiracy charges on Nov. 16, 2011, after pleading guilty. 

"Protecting the integrity of our financial institutions and helping to maintain the public’s trust in our local banks and credit unions is an investigative priority for the United States Secret Service. With the help of our local, state and federal law enforcement partners, corrupt bank employees who betray this trust by engaging in fraudulent activity will be investigated and apprehended," said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.            

The case was investigated by Special Agents of the Federal Bureau of Investigation, United States Secret Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Stephen H. McClain prosecuted the case.