PHOENIX, Ariz. – The District of Arizona today announced charges as part of a nationwide enforcement actions led by the Justice Department’s National Fraud Enforcement Division, Internal Revenue Service, and Internal Revenue Service Criminal Investigation targeting tax fraud and related offenses. Arizona was key participant in this surge effort. Between early September and today, 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 $490,000,000.

As part of this surge, on Sept. 22, a federal grand jury in Phoenix returned a 17-count indictment against Nicholas Raymond Ponce, 52, of Tempe, Arizona. Ponce is alleged to have defrauded the United States of over $1.6 million 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. In reality, Ponce’s companies had zero W-2 wage employees during the relevant period and he was not entitled to the tax credits. 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.

Additionally, Pacifique Kashosi, 44, of Phoenix, Arizona, was convicted by a federal jury on Sept. 25, on two counts of Subscribing and Filing a False Tax Return and 18 counts of Aiding and Assisting in the Preparation and Filing of False Tax Returns. The total alleged loss to the government for Kashosi’s tax scheme is $900,000. He is scheduled for sentencing on Dec. 7, before U.S. District Court Judge John J. Tuchi. Kashosi faces a maximum penalty of three years in prison and a maximum fine of $250,000 for each count.

This press release details one way in which this office has contributed to ensuring that all Americans pay their fair share. To see the successes of other offices, please see this press release.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs. An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. RELEASE NUMBER: 2026-175_National Tax Enforcement Surge# # #

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news