17 San Diego-area gang members charged with alleged COVID tax fraud

SAN DIEGO (CNS) – Members of four different San Diego-area gangs are accused of fraudulently applying for millions in COVID-related tax credits, leading to a grand jury indictment charging 17 people with various crimes, prosecutors announced Wednesday.

The alleged scheme involved fraudulent tax returns for sick and family leave credits intended to help certain self-employed individuals affected by the COVID-19 pandemic. While the tax form used to claim these credits did not allow for more than 60 days of pandemic-related leave, the defendants allegedly reported periods that significantly exceeded that time period. According to prosecutors, some of the defendants reported amounts ranging from 790 to 15,678 days of leave for a single year.

According to the San Diego County District Attorney's Office, the defendants claimed more than $2.2 million in pandemic relief tax credits, received about $1.75 million of that money, and spent that money on personal items that prosecutors say they and their gangs profited from. According to prosecutors, the fraudulent tax returns resulted in payments to the IRS ranging from $97,645 to $229,153.

The alleged fraud first came to light as part of an unrelated murder investigation when a suspect's cellphone appeared to yield evidence of a fraudulent tax return. Prosecutors say the investigation into the 2022 Lincoln Park murder of Tre'Von Stewart-Jordan has now resulted in a murder conviction and a life sentence without parole for one defendant, as well as murder charges against several others, including Haben Haile, who is also charged in the fraud charge.

Prosecutors say the scheme was masterminded by 31-year-old Stephen Pittman Jr., who is accused of recruiting co-conspirators and helping them make the false claims. Pittman allegedly used part of his share of the proceeds from the fraud to buy diamond-encrusted watches and necklaces.

The defendants are charged with 81 criminal counts, including conspiracy to commit a crime, filing a fraudulent tax return, aiding and abetting the filing of a fraudulent tax return, receiving stolen goods and money laundering.

Of the 17 defendants, 14 were arrested on Tuesday, the public prosecutor's office announced. Two others were already in custody at the time, and one is still at large.

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