Minnesota Man Charged In $350M Tax Refund Fraud Scheme
BY MN CRIME STAFF
Investigators say the man used $2.6 million from the fraud to purchase this house in Prior Lake.
A man is charged after prosecutors say he ran a tax fraud scheme that generated more than $19 million in fraudulent refunds and sought more than $350 million from the federal government.
The indictment alleges the activity involved filing false tax returns, attempting fraudulent bank transactions and recruiting others to submit similar filings.
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Caesar Munir Wilson is accused of filing and conspiring to file fraudulent tax returns seeking large refunds from the Internal Revenue Service. Federal court records show he made an initial appearance in U.S. District Court and was released under conditions on a bond while the case proceeds.
According to the indictment, Wilson personally filed tax returns requesting more than $90 million in refunds and helped others file additional returns requesting more than $210 million. Prosecutors allege the total fraudulent claims exceeded $350 million and resulted in the U.S. Treasury paying out more than $19 million before investigators intervened.
Investigators say Wilson operated through business and trust entities he controlled, including the Caesar Wilson Company, which prosecutors allege had no legitimate business operations, and several trusts and estates used to submit tax filings. Court documents also state Wilson never reported more than $100,000 in employment income on his federal taxes.
The indictment outlines alleged fraudulent tax filings dating back several years. Prosecutors say Wilson’s filings expanded in 2018 when he allegedly claimed he and his wife were businesses, used Social Security numbers as employer identification numbers and listed the Minnesota State Capitol address as a business location. Investigators say he also filed 14 amended returns in 2021 covering tax years from 2006 through 2019, requesting about $73 million in refunds he was not entitled to receive.
Authorities allege Wilson later used IRS estate and trust tax forms to claim false income and deductions. Prosecutors say his 2020 filing claimed more than $12 million in income, including $11 million in gambling winnings, and over $24 million in deductions, including a large farming loss even though investigators say he was not a farmer. Court records state he requested nearly $900,000 in refunds and received more than $649,000, which investigators say he used for cryptocurrency purchases and personal expenses.
Prosecutors say Wilson’s alleged fraud escalated in 2021 when he filed another estate return requesting more than $8.5 million in refunds, which was ultimately paid. Investigators say he later used approximately $2.6 million from that refund to purchase a 63.5-acre property with a five-bedroom home on Lake Cynthia in Prior Lake and invested about $5.5 million with a Detroit investment manager.
Investigators allege Wilson also attempted to defraud financial institutions. Prosecutors say he deposited a fake $11.7 million Treasury check into a bank account in March 2023. The bank initially credited the funds but later reversed the deposit after determining the check contained invalid routing and account numbers. Court records state Wilson later admitted creating the check himself.
Authorities further allege Wilson attempted to transfer $20 million using an account connected to the Federal Reserve Bank of St. Louis that he was not authorized to access. Prosecutors say the attempt failed after Wilson entered an incorrect account number. Court documents also describe three additional attempted transfers of $28 million in November 2023 using a closed bank account.
The indictment also alleges Wilson trained others to commit similar fraud. Prosecutors say Wilson told another man that government trust accounts tied to birth certificates could be accessed through trust tax returns and advised him that numbers used in filings could be fabricated. Court documents state Wilson helped the man prepare returns requesting millions of dollars in refunds, including a 2022 filing that led to a payment of more than $10.1 million from the Treasury.
Prosecutors allege Wilson and the man agreed he would recruit clients for Wilson to teach similar methods and share proceeds from fraudulent refunds. Court documents state the man later filed 38 amended tax returns requesting more than $202 million in refunds that were not paid.
Wilson is charged with one count of a filing false claim for tax refund, conspiracy to file a false claim for refund, money laundering and bank fraud. Prosecutors are also seeking forfeiture of money and property that was obtained through the scheme if he is convicted.
