Metro

Cop arrested for identity theft, filing fraudulent tax returns for ‘clients’

A NYPD officer who moonlighted as a tax preparer was arrested by IRS agents today and charged with identity theft and filing fraudulent returns for customers.

Jonathan Wally, a 10-year police department veteran assigned to the 34th Precinct in Washington Heights, illegally utilized Social Security numbers issued to dozens of unwitting children in order to submit tax returns for clients and then falsely claim they had dependents and should receive tax credits, officials said.

Manhattan federal prosecutors say the 33-year-old officer also offered to prepare fraudulent income tax returns for an undercover NYPD officer and an undercover state agent who posed as customers during Internal Revenue Service probe.

Wally, who lives in The Bronx, prepared dozens of fraudulent tax returns that cheated the government out of tens of thousands of dollars, while the moonlighting officer raked in fees, prosecutors alleged.

Manhattan federal Magistrate Judge James Francis IV told Wally that he was charged with five criminal counts, including aggravated identity theft, possessing false identification to commit fraud against the US, and making false statements and declarations on tax returns.

If convicted, Wally faces around 30 years in prison, officials said. He posted a $50,000 bond and is now suspended without pay from the police department, officials said. Wally declined to comment on the case after his court hearing.