A probe of one of the biggest identity-theft cases in Colorado history will be undertaken by two grand juries, although the ACLU of Colorado says it is “highly likely” it will challenge the legality of the investigation.
The grand jury probe stems from the seizure in October of 4,900 tax files from Amalia’s Translation and Tax Service in Greeley by the Weld County Sheriff’s Office.
The search warrant was based on statements of a man identified as Servando Trejo, who told investigators he had entered the country illegally, purchased a Social Security number and name once in the U.S. and then used the tax service for years even though he told them the name and number were fake.
Deputies discovered that out of the nearly 5,000 files seized, there were 1,338 suspected cases of identity theft or criminal impersonation on tax returns filed in 2006 and 2007. Authorities traced about $2.6 million in payments to illegal immigrants using phony Social Security numbers, said Weld County District Attorney Ken Buck.
The investigation resulted in more than two dozen arrests until December, when Weld County District Judge James Hartmann raised questions about the legality of the search warrant used to seize the files. He said he didn’t think a state court had jurisdiction to issue a search warrant for federal tax files.
At the same time, Judge Roger Klein, chief judge of the Weld County District Court, issued an order sealing all arrest warrants and tax-related documents in the case because of privacy concerns.
On Tuesday, Buck went before Klein and successfully argued that the 2008 and the incoming 2009 Weld County grand juries — whose sessions are secret and where the tax documents would be kept private — should be able to continue the probe.
In fact, the 2008 grand jury last week returned five indictments related to the identity-theft scam. As of Thursday, 49 arrests have been made and there are 65 outstanding arrest warrants.
Jennifer Finch, spokeswoman for the Weld County district attorney’s office, said Buck saw the grand juries as a way to break the logjam created by the fact Hartmann has yet to rule on whether state officials can legally seize federal tax records.
But Mark Silverstein, Colorado ACLU’s legal director, said that Amalia Cerrillo, owner of Amalia’s Translation and Tax Service, asked for assistance from the American Civil Liberties Union. He said both Cerrillo, who has not been charged with any wrongdoing, and the ACLU have serious concerns about the seizure of the tax files.
In a letter to Klein, Silverstein said it is “highly likely” that the ACLU will file a civil lawsuit on behalf of Cerrillo seeking the return or destruction of copies of the materials seized from her business.
Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com
