Livingston Man Used Dead Man's ID to Gain $373K in Illegal Refunds

A Livingston man pleaded guilty Wednesday to filing tax claims under a dead man's name, preparing false documents for fraudulent loans and receiving hundreds of thousands of dollars in illegal tax refunds, according to authorities. 

Todd Halpern, 48, stood before a U.S. District judge and pleaded guilty to wire fraud and filing false tax claims that netted him more than of $373,000 in fraudulent tax refunds, which authorities said he used to support his lavish lifestyle and buy parts to his classic 1957 Chevy Bel Air, according to U.S. Attorney Paul J. Fishman.    

Near the end of 2008, Halpern purchased A & V Financial, a tax-return preparation business in Guttenberg from the wife of the deceased owner. Halpern continued to file tax returns using the dead man's Electronic Filing Identification Number, a government authorized license, because Harlpern's past criminal record prevented him from obtaining a new number. 

Between 2009 and 2010, Halpern prepared 657 federal income tax returns using the dead man's identification, containing fraudulent income and deduction amounts, and filing returns using people's names without their knowledge, Fishman said.

In addition, Halpern prepared false documents for numerous fraudulent loans from financial institutions. Halpern prepared tax returns, Forms W-2, and bank statements showing inflated income and asset balances to be used to support loan applications for borrowers, including him, to acquire mortgage loans, involving residential properties in New Jersey, as well as other personal and business loans. 

Halpern deposited all the fraudulent tax refund checks into his own bank account. Over the years, he accrued a total of $373,938, Fishman said.

Authorities said Halpern used the money to buy items at Prada, Chanel, Saks Fifth Avenue, purchase New York Giants tickets, and make car payments on a 2007 Cadillac Escalade and 2008 Lexus GX-470, and buy car parts for his classic 1957 Chevy Bel Air. 

Halpern is facing a wire fraud count with a maximum penalty of 30 years in prison and a fine of up to $1 million, or twice the amount he accrued. The tax fraud count carries a maximum penalty of five years in prison, and a maximum fine of $250,000.

Sentencing is scheduled for Sept. 10.