NEW ORLEANS (WVUE) - The FOX 8 Defenders learn federal authorities have arrested five people for their alleged involvement in one of the biggest IRS tax scams. Agents for the Treasury Inspector General for Tax Administration arrested all of the suspects in Miami this week.
They face wire fraud and conspiracy to commit wire fraud. Court documents reveal they defrauded more than 1500 victims.
The FOX 8 Defenders have heard from many people in our area who've fallen for the same IRS phone scam, including a Plaquemines Parish man who turned over nearly $12,000 to con artists who pretended to work for the IRS.
"They said you are in trouble with the IRS, you owe back taxes.. you owe a lot of money, and your choice is you either pay it right now or we have no choice but to send you to jail," explained Troy Barron.
Authorities say callers persuade victims to wire money and place funds on prepaid cards, including iTunes gift cards, but federal agencies warn, these are all signs of fraudulent activity.