Calgary (July 21, 2020) – The Canada Revenue Agency (CRA) accused Chun Zhu, a.k.a. Ted Zhu, of conducting an employment scam with the intention to steal identities. Thereafter, he allegedly used the gathered personal information about his victims in a tax refund scam. As a result of the investigation, he was criminally charged on July 16. The CRA alleged that the Calgary man filed 317 fake personal tax returns claiming more than $760,000 in unwarranted tax refunds.
The Canada Revenue Agency (CRA) announced that Chun Zhu aka Ted Zhu of Calgary has been charged for a $760,000 tax refund scam in a press release on July 17.
Employment scam, identity fraud, and tax refund scam
During a tax fraud investigation, the CRA discovered that Zhu allegedly set up fake job postings since March 2018. The Calgary man is accused of harvesting personal information from the individuals, who fell victim to his employment scam, with the intention to steal their identities.
In February 2019, he supposedly used the gathered personal data from the unsuspecting victims of his employment scam to file fake tax returns. ‘Zhu used the information he gathered from these applications to electronically prepare, print out, and file as many as 317 personal tax returns,’ the CRA said.
Zhu allegedly tried to have more than $760,000 in unwarranted tax refunds deposited into bank accounts, which he controlled.
The criminal charges
On July 16, Zhu has been criminally charged with one count of claiming a refund to which he or any other person is not entitled, two counts of fraud over $5,000, and two counts of obtaining and using another’s identity to commit an indictable offense.
The CRA pointed out that they investigate suspected cases of tax evasion, fraud, and other serious violations of tax laws and that they recommend cases to the Public Prosecution Service of Canada (PPSC) for criminal prosecution.
From 2019 to 2020, the PPSC conviction rate for tax-related crimes was 94 percent, according to the CRA’s press release.
Marina Burghard writes for Canadian Fraud News about fraud-related cases, whistleblower, jurisdiction, identity theft, consumer protection, etc. – essentially about scams and how to protect yourself against this kind of fraudulent criminal behavior. She holds a Master’s degree in Political Science where her interest in criminology grew. Besides fraud, Marina’s scientific interest lies in terrorism, extremism and how to deal with it as a society.