logo



Several sentenced in Nashville tax fraud scheme

Staff Reports • Jan 4, 2018 at 7:14 PM

NASHVILLE – The final defendant charged in a conspiracy to file fraudulent federal income tax returns, claiming millions of dollars in bogus refunds, was sentenced Wednesday in U.S. District Court.

U.S. District Judge Aleta A. Trauger sentenced Victor Oliva, 40, of Hendersonville, to 18 months in prison, followed by three years of supervised releases. Trauger also ordered Oliva to pay restitution of $1,308,422 to the IRS for his role in the multi-million dollar tax refund scheme.

In April 2015, 10 federal search warrants were carried out at various homes and tax return businesses throughout Middle Tennessee, including Soto’s Income Tax Service in Madison; Soto’s Services 2 in Hermitage; Soto’s Income Tax in Springfield; Soto Services 1 in Gallatin; and S Income Tax Services in Nashville. Agents found part of the tax fraud scheme dated back to 2011, and 46 people were ultimately charged and convicted of federal offenses.

During the investigation, agents seized more than $1 million; several late-model luxury vehicles; and 11 Nashville-area residential properties owned by one of the defendants. Many of the people charged were in the United States illegally and were since convicted and deported.

Oliva was the sole owner and operator of one of the tax return preparation business known as S Income Tax Preparation on Charlotte Pike in Nashville. On Dec. 8, 2016, Oliva pleaded guilty to his role in the scheme and admitted to preparing and filing 166 false federal income tax returns with the IRS claiming fraudulent refunds of more than $1.3 million.

Several other defendants played a significant role in the scheme.

Byron Fernandez-Virula, Jr., 25, of Madison, pleaded guilty April 26, admitting he prepared and filed 236 false federal income tax returns claiming fraudulent refunds of more than $1.4 million. He also admitted to cashing at least $351,000 in fraudulently obtained tax refund checks at a check cashing business in Shelbyville. In July, he was sentenced to 24 months in prison, followed by two years of supervised release, and was ordered to pay more than $1.4 million in restitution to the IRS.

Byron Fernandez-Virula, Sr., 45, of Madison, pleaded guilty June 12, admitting he prepared and filed at least 1,064 false federal income tax returns claiming fraudulent refunds of nearly $5.9 million. He also admitted to cashing at least $817,000 in fraudulent obtained tax refund checks at a check cashing business in Shelbyville. He was sentenced in September to 37 months in prison, followed by three years of supervised release, and was ordered to pay more than $1.4 million in restitution to the IRS.

Wilmar Soto-Virula, 35, of Madison, pleaded guilty July 7, admitting he prepared and filed at least 170 false federal income tax returns claiming fraudulent refunds of at least $730,707. He was sentenced in September to 28 months in prison, followed by two years of supervised release, and was ordered to pay $730,707 in restitution to the IRS.

Julio Soto, 30, of Goodlettsville, pleaded guilty July 13, admitting he prepared and filed at least 130 false federal income tax returns claiming fraudulent refunds of at least $737,788. He was sentenced in November to 36 months in prison, followed by three years of supervised release, and was ordered to pay $737,531 in restitution to the IRS. 

Recommended for You