New Jersey resident sentenced to 24 months in prison for wire fraud conspiracy

 

Date: June 23, 2021

Contact: newsroom@ci.irs.gov

Springfield, NJ — Jerry Carter Jr. was sentenced today to 24 months in prison for his role in a wire fraud conspiracy.

U. S. District Court Judge also ordered Carter to serve 3 years on supervised release and pay restitution in the amount of $217,274.00.

According to documents and statements made in court:

Between September 2015 and August 2017, Carter, along with co-conspirators Olga Shevlyakova and Jaziel Wynns, devised a scheme to fraudulently induce payroll companies to give them cash they never intended to pay back. Carter and his coconspirators contacted payroll companies and used fictitious identities posing as representatives from these companies seeking payroll service for alleged employees.

Carter and his co-conspirators obtained Employer Identification Numbers (EINs) from the IRS for the fictitious companies that were used in the scheme. In order to obtain the EINs, Carter and his co-conspirators submitted fraudulent Forms SS-4 to the IRS. In doing so, they were able to obtain at least 39 EINs from the IRS for the fictitious companies used in the scheme.

After entering into service relationships with the payroll companies, Carter and his coconspirators provided the payroll companies with information for several purported employees for whom each of the payroll companies would be processing payroll. This information included the purported employees' names, fictitious salaries, and falsified W-4 forms and Employee Withholding Allowance Certificates.

Carter and his co-conspirators provided the payroll companies with payment information for each purported employee in the form of voided checks or direct deposit sheets containing the bank routing numbers and account numbers for prepaid debit cards. They also altered the voided checks to display the purported employee's name and fictitious address. In reality, the payment information that Carter and his co-conspirators provided to the payroll companies was for at least 29 bank accounts and prepaid debit cards controlled by Carter and his co-conspirators.

Based on Carter and his co-conspirators' misrepresentations to the payroll companies, the payroll companies processed and transmitted payroll and bonus payments to the purported employees of the fictitious companies. After the funds were deposited into the accounts controlled by Carter and the co-conspirators (the "Fraudulent Accounts"), Carter and his co-conspirators withdrew them, either at the teller counter or via ATM withdrawals, or spent the funds using debit cards linked to the accounts.

During the conspiracy, Carter and his co-conspirators withdrew approximately $125,000 from the Fraudulent Accounts. When the payroll companies initiated bank transfers to collect reimbursement for the payments to the purported employees, the payroll companies received non-sufficient fund notices or closure notices for the bank accounts of the fictitious companies. When the payroll companies attempted to follow up with the representatives of the fictitious companies (Carter and his co-conspirators) they stalled and eventually became nonresponsive. The payroll companies never received any reimbursement or compensation for their services.

The investigation was conducted by IRS-Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Michael Montanez and the U.S. Attorney's Office, under the direction of Acting U.S. Attorney Rachael A. Honig.

The government is represented by Assistant U.S. Attorney Naazneen Bashir Khan.