SANTO DOMINGO, (Reuters) – At least 14 people were arrested in the Dominican Republic in a joint investigation by local and U.S. authorities into a $100 million tax fraud against the U.S. Treasury, senior officials said on Wednesday.
“The fraud is related to taxes paid to the U.S. Treasury Department, with links in the Dominican Republic,” the Dominican Republic’s Attorney General Radhames Jimenez said.
He added arrests had also been made in the United States and Puerto Rico in connection with the fraud, which involved claims for tax paybacks sent from the Dominican Republic. Those arrested included U.S. Postal Service employees.
Dominican Republic authorities had cooperated with the FBI in the four-month investigation.
Police Colonel Alejandro Dipre said the inquiries had revealed the existence of a number of “ghost” companies in the Dominican Republic and investigators seized computers and other equipment there this week.