BAKERSFIELD, Calif.(KBAK/KBFX) — A Bakersfield tax preparer, Victor Cruz, 41, has been sentenced to one year and six months in prison for his involvement in a $25 million tax fraud scheme, the U.S. Department of Justice announced Monday.

Cruz pleaded guilty in July to assisting Miguel Martinez, a 42-year-old Mexican national residing illegally in Bakersfield, in submitting fraudulent federal income tax returns. Martinez, who led the scheme, was sentenced to six years in prison in September 2024.

Court records reveal that between November 2019 and June 2023, Martinez orchestrated a plan to file thousands of fraudulent tax returns, claiming millions in refunds. He created fake businesses to report phony wages and withheld information from the IRS, then filed individual tax returns for supposed employees to claim refunds. Cruz prepared and filed over 500 of these fraudulent returns, accounting for 10% to 15% of the total.

RELATED: 2 Bakersfield men indicted for alleged $25M tax refund fraud scheme: DOJ

In return, Cruz received thousands of dollars in fees from Martinez. The IRS paid out $2.3 million of the $25 million claimed in fraudulent refunds.