I once met a tax fraudster at a conference. (I had no idea then.) It turns out he was behind one of the biggest individual tax fraud schemes in U.S. history—$145 million!

On The Accounting Podcast—click here to listen to the segment—I shared my experience meeting Rafael Alvarez, nicknamed "The Magician" by clients who watched their tax liabilities disappear at his Bronx-based company, ATAX.

He's incredibly charming—which explains how he maintained this scheme for decades.

The fraud itself wasn't sophisticated:

• Filed thousands of returns with fake deductions

• Created false business expenses and capital losses

• Invented tax credits for inflated refunds

How did he keep it going for so long?

Alvarez recruited undocumented workers, intimidating them into participating and even impersonating licensed tax preparers. When employees raised concerns, he threatened them and blocked any attempts to correct the fraudulent returns.

The aftermath? Alvarez agreed to pay back $145 million to the IRS and forfeit $12 million in profits. He’s facing up to 8 years in prison, with sentencing scheduled for April 11th.