Victor Cruz, 40, who was a tax return preparer in Bakersfield, pleaded guilty Monday for his role in a $25 million fraud, the Department of Justice announced.

Cruz helped Miguel Martinez, a Mexican national who was in the United States illegally, submit phony federal income tax returns claiming $25 million in refunds, prosecutors said.

Martinez pleaded guilty earlier and was sentenced to six years in federal prison.

According to court records, from November 2019 through June 2023, Martinez used stolen identities to create fake businesses and report phony wage and withholding information for the businesses to the IRS.

Cruz prepared and filed more than 500 fraudulent tax returns, which claimed more than $3 million in refunds, as part of the scheme. Cruz received thousands of dollars in fees from Martinez in exchange for his services.

The IRS actually paid out $2.3 million of the $25 million in refunds claimed in the fraudulent tax returns.

This case is the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Joseph Barton is prosecuting the case.

Cruz is scheduled to be sentenced on Nov. 17, 2025. He faces a maximum of 10 years in prison and a $250,000 fine.