Examples of Identity Theft Schemes - Fiscal Year 2013

The following examples of identity theft schemes are written from public record documents on file in the court records in the judicial district in which the cases were prosecuted.

South Florida Women Sentenced in Identity Theft Tax Refund Fraud Scheme
On April 25, 2013, in Fort Lauderdale, Fla., Alci Bonannee, of Fort Lauderdale, and Sonyini Clay, of Miami Gardens, were sentenced for their roles in an identity theft tax refund fraud scheme. Bonannee was sentenced to 317 months in prison, three years of supervised release and ordered to pay $1,908,182 in restitution to the IRS. Clay was sentenced to 121 months in prison and three years of supervised release. On January 28, 2013, Bonannnee was convicted at trial of conspiracy to defraud the government with respect to false claims, filing false claims, wire fraud and aggravated identity theft.  On January 13, 2013, Clay pleaded guilty to conspiracy to defraud the government with respect to false claims and aggravated identity theft. According to court documents, Bonannee, Clay and co-defendant, Chante Mozley, engaged in a large-scale identity theft tax fraud scheme that operated from December 2010 through June 2012. During the course of the scheme, there were approximately 2,000 fraudulent tax returns submitted to the IRS seeking $11 million in refunds. Bonannee filed a majority of the fraudulent tax returns from her house and other locations using compromised personal identification information obtained from a nurse at a local hospital. Clay filed several hundred fraudulent tax returns from her house and other locations. Mozley was sentenced on March 29, 2013 to 42 months in prison, three years of supervised release and ordered to pay $1,908,182 in restitution.

Alabama Man Sentenced for Stolen Identity Refund Fraud
On April 24, 2013, in Montgomery, Ala., Kenneth Jerome Blackmon, Jr., of Montgomery, Ala., was sentenced to 51 months in prison, three years of supervised release and ordered to pay $197,839 in restitution. Blackmon pleaded guilty in January 2013 to aggravated identity theft and access device fraud. According to court documents, Blackmon used stolen identities to file false federal income tax returns with the IRS. He acquired names and Social Security numbers and used that identity information on false tax returns. He then directed fraudulent tax refunds onto debit cards. Blackmon also admitted to possessing at least 15 Social Security numbers to obtain fraudulent tax refunds from the IRS.

Florida Man Sentenced in Identity Theft Tax Refund Fraud Scheme
On April 17, 2013, in Miami, Fla., Marckell Steward was sentenced to 72 months in prison and three years of supervised release. Restitution will be determined at a later date. Steward previously pleaded guilty to conspiracy to commit access device fraud and aggravated identity theft. According to court documents and court testimony, Steward along with co-conspirators Lineten Belizaire, Earnest Baldwin and Earl Baldwin, all of Miami, were involved in an identity theft tax fraud scheme that operated from July 2011 through June 2012.  During the course of their fraud scheme, approximately $1.7 million in fraudulent refund claims were submitted to the IRS for payment. Steward and the co-conspirators used stolen personal identification information of others to file fraudulent and unauthorized tax returns claiming refunds on debit cards. Some of the refund claims were filed from Earl Baldwin's residence. According to the factual proffer, Steward exchanged text messages with Belizaire where the defendant sent and received personal identification information of victims and also sent and received debit card account numbers that were used for receiving victims’ tax refunds. Earnest Baldwin was found with over 1,000 individual names, dates of birth and Social Security numbers and approximately 40 pre-paid debit cards in other people’s names. Some of these papers seized included high school report cards with identity information and data from an organization for disabled persons containing identity information. The evidence at trial also showed that Earnest and Earl Baldwin withdrew money from debit cards loaded with fraudulent refunds in the names of victims in the papers and notebooks found on Earnest Baldwin. The remaining co-conspirators are awaiting sentencing.

Louisiana Woman Sentenced for First Time Homebuyer Credit Tax Scheme
On April 18, 2013, in Baton Rouge, La., Brenda Matthews was sentenced to 12 months and one day in prison, two years of supervised release and ordered to pay $117,656 in restitution. Matthews pleaded guilty on October 25, 2012 to making false claims to an agency of the United States and two counts of identity theft.  According to court documents, in July and August 2009, Matthews filed 20 tax returns for tax year 2008 fraudulently claiming refunds based on First Time Homebuyer Credits. The returns prepared by Matthews listed the names and Social Security numbers of others who had allegedly purchased homes, when in fact; the homes had not been purchased. In some instances, she used the Social Security numbers of people who did not know their identities were being used to file fraudulent tax returns.

Florida Men Sentenced in Stolen Identity Tax Refund Scheme
On April 16, 2013, in Miami, Fla., Frandy Prophete was sentenced to 61 months in prison, three years of supervised release and ordered to pay $1,849,168 in restitution. On April 10, 2013, Frantz Charles was sentenced to 61 months in prison, three years of supervised release and ordered to pay $1,648,286 in restitution. Both defendants previously pleaded guilty to conspiracy to file false and fraudulent claims and aggravated identity theft.  According to court documents, Prophete and Charles were charged in a multi-count indictment together with other co-conspirators for participating in an identity theft tax refund scheme involving the use of the identities of over 900 deceased individuals to file fraudulent income tax returns. The tax refunds generated from the filing of these fraudulent returns were, in turn, deposited into bank accounts controlled by the co-conspirators.

Leader of Romanian-Based Tax Fraud Conspiracy Sentenced
On April 12, 2013, in Chicago, Ill., Ovidiu Isac, of Skokie, Ill., was sentenced to 85 months in prison and ordered to pay $1,641,209 in restitution. He will be subject to deportation after completing his sentence. Isac pleaded guilty in January 2013 to conspiracy to defraud the United States and theft of government funds. According to court documents, Isac oversaw and directed nearly two dozen co-defendants to use their bank accounts to receive false tax refunds in the names of Romanian citizens who had visited the United States on exchange or student visas. At least 470 false tax returns, claiming between $4,000 and $7,000, were filed between tax years 2007 and 2009. Of the 24 defendants indicted in this conspiracy, 19 have been convicted and sentenced, while five remain fugitives.

Man Sentenced for Involvement in Tax Refund Scheme
On April 12, 2013, in Philadelphia, Pa., Howard Chilsom was sentenced to 16 months in prison, three years of supervised release and ordered to pay $67,952 in restitution to the IRS. Chilsmon pleaded guilty to conspiracy to make false claims to the United States.  According to court documents, from February 2007 to April 2012, Chilsom, with the help of others, filed numerous false federal income tax returns. Chilsmon and his co-conspirators directly obtained personal identifying information, including name and social security number, of other “taxpayers” for the purpose of filing false, fraudulent, and fictitious federal income tax returns.  Also, in 2007, with the help of a co-conspirator, Chilsom filed a false tax return claiming a $1,379 Telephone Excise Tax Refund (TETR).

Husband and Wife Sentenced in Stolen Identity Tax Refund Scheme  
On April 11, 2013, in Miami, Fla., Douglas Michael Young, aka Douglas Pierre, and his wife, Nicole Young, aka Nicole Pierre, aka Nicole Pierre Smith, both of Miramar, were sentenced for their participation in a stolen identity tax refund scheme.  Douglas Young was sentenced to 61 months in prison and three years of supervised release.  Nicole Young was sentenced to 54 months in prison and three years of supervised release.  In addition, the Youngs were ordered to pay $849,052 in restitution. The Youngs previously pleaded guilty to one count of conspiracy to steal government property, one count of theft of government property, and one count of aggravated identity theft.  On October 5, 2011, six defendants were charged in a nine-count indictment for their participation in a tax refund scheme that resulted in the submission of approximately $1,207,389 in fraudulent claims for refunds using the personal identification information of unknowing victims.  In addition to Douglas and Nicole Young, the indictment charged Jeffrey Andre Young, Jr. and Ernest V. Charles, both of Miami, and Joseph Bshara and Siham Benabdallah, both of Miami Shores, Fla.  According to court documents, the Youngs owned and operated two tax preparation companies. As part of the scheme, the Youngs charged unknowing victims a “fee” for their purported tax preparation services. The Youngs would deduct the “fee” from any tax refunds and would deposit the “fee” into bank accounts they controlled. The remainder of the refunds would be converted into personal checks that would be deposited into bank accounts controlled by the co-defendants. On April 9, 2013, Jeffrey Andre Young, Jr was sentenced to 34 months in prison and three years of supervised release. On April 9, 2013, Siham Benabdallah, was sentenced to time served and three years of supervised release. Joseph Bshara awaits sentencing and Ernest Charles remains at large.

Florida Man Sentenced in $1.6 Million Stolen Identity Tax Refund Scheme
On April 10, 2013, in Miami, Fla., Frantz Charles was sentenced to 61 months in prison, four years of supervised release and ordered to pay $1.648 million in restitution. Charles previously pleaded guilty to one count of conspiracy to file false and fraudulent claims and another count of aggravated identity theft. According to court documents, Charles was charged in a multi-count indictment along with other co-conspirators for participating in an identity theft tax refund scheme involving the use of the identities of over 900 deceased individuals to file fraudulent income tax returns.  The tax refunds generated from the filing of these fraudulent returns were, in turn, deposited into bank accounts controlled by the defendant and other co-conspirators.

Washington Man Sentenced for Tax Fraud Scheme
On April 8, 2013, in Tacoma, Wash., Richard Shane Wright was sentenced to 33 months in prison, three years of supervised release and ordered to pay $71,885 in restitution for conspiracy to defraud the government. Wright is one of four people indicted for fraudulently claiming more than $145,000 in tax refunds using the names and Social Security numbers of inmates at the Washington State Penitentiary at Walla Walla. According to court documents, Wright joined the scheme in late March 2009, which was responsible for filing at least 31 fraudulent tax returns for tax years 2007 and 2008. The alleged leader of the conspiracy, Kenneth Randle Door provided the names and Social Security numbers of his fellow inmates and Wright and others used them to create and file fake W-2 forms and federal income tax returns, all claiming tax refunds due. In order to fabricate employment and wage data, the conspirators identified companies that had declared bankruptcy and had recently closed. Wright created fake W-2 forms indicating wages paid and taxes withheld from the individuals whose identities they used. The refunds were typically directed to one of several bank accounts controlled by Wright or another associate. Co-conspirators Lucy Anne Hyder, aka Lucy Bailey, was sentenced in February 2013 to eight months in prison, and Ruth Louise Branstetter, aka Ruth Bishop, was sentenced in March 2013 to almost 7 months in prison.

Florida Woman Sentenced for Tax Fraud and Identity Theft
On April 4, 2013, in Tampa, Fla., Danielle "Remi" Denson was sentenced to 76 months in prison and ordered to pay a money judgment of $9,046, traceable to the proceeds of the offense. Denson pleaded guilty in December 2012 to defrauding the IRS and aggravated identity theft.  According to court documents, on May 31, 2011, local and federal agencies executed a search warrant at Denson's apartment in Riverview. During the search, officers discovered documents consistent with the filing of fraudulent federal income tax returns using stolen identities. Specifically, officers recovered hundreds of pages of handwritten and typed ledgers listing individuals' names, social security numbers, and refund amounts. From approximately 2008 through and including 2011, Denson attempted to file returns totaling approximately $2,363,849.

Florida Man Sentenced for Role in Identity Theft Tax Refund Fraud Scheme
On April 3, 2013, in Miami, Fla., Arthy Icart, of Miami, was sentenced to 70 months in prison and three years of supervised release for his participation in a $3.3 million stolen identity tax refund fraud scheme. Icart previously pleaded guilty to conspiracy to file fraudulent claims, access device fraud, and aggravated identity theft.  Icart and co-conspirator Charlton Escarmant, of Miami, were charged in a five-count indictment for their participation in an identity theft tax refund scheme. According to court documents, some of the personal identification information used by Icart and Escarmant was stolen from a community college’s financial aid office.  Icart and Escarmant filed tax returns using the stolen identification information and also in their own name, and created false W-2 forms with fictitious employer information.  Neither defendant ever worked for the employers noted on the false W-2 forms.  At the time of their arrest, Icart and Escarmant unlawfully possessed approximately 22 pre-paid tax debit cards in the names of other individuals. In total, during the course of the scheme, Icart and his co-conspirator submitted approximately 400 fraudulent tax returns to the IRS, seeking more than $3.3 million in tax refunds. Sentencing for Charlton Escarmant has been scheduled for a later date.

Alabama Stolen Identity Refund Fraud Conspirators Sentenced
On March 28, 2013, in Montgomery, Ala., Mary Bennett, of Elmore County, Ala., was sentenced to 75 months in prison for her role in an identity theft and tax fraud scheme. On March 27, 2013, Eugenia Burks, also of Elmore County, was sentenced to 18 months in prison for her role in the same scheme. Bennett had previously pleaded guilty to conspiracy to commit mail and wire fraud, as well as aggravated identity theft. Burks pleaded guilty to conspiracy. According to court documents, Bennett and Burks were part of a conspiracy to fraudulently obtain both federal and state income tax refunds by using stolen identities to file false tax returns. Fraudulently obtained refund checks were mailed to various addresses used in the conspiracy, while other refunds were obtained through direct deposits into numerous bank accounts controlled by the conspirators. Bennett admitted to being the one responsible for actually filing the false tax returns and also to storing stolen identity information at her home.

California Woman Sentenced for Role in Tax Fraud Scheme
On March 27, 2013, in Sacramento, Calif., Nadiyah Muhammad Woods was sentenced to 37 months in prison, three years of supervised release and ordered to pay $902,617 in restitution. Woods is the last of three defendants to be sentenced for a scheme to obtain tax refunds by filing false tax returns. Nakia Renee Vaughn was sentenced in December 2012 to 70 months in prison and three years of supervised release. Tomisha Lee McKinnie was sentenced in November 2012 to 60 months in prison and three years of supervised release. According to court documents, Woods, Vaughn and McKinnie filed false tax returns using an online tax preparation software. To operate the scheme, the defendants obtained Green Dot and other debit cards offered through the software that were loaded with the tax refunds of taxpayer victims whose identities they used. They had the tax refunds mailed to various addresses under their control in Sacramento County. The defendants posed as the victims in order to activate the debit cards, cash the checks, and obtain cash, goods and services. The scheme involved more than 280 false tax returns and more than 200 victim taxpayers.

New York Resident Sentenced for Role in Fraudulent Tax Refund Scheme
On March 22, 2013, in White Plains, N.Y., Jared Brewton was sentenced to 41 months in prison for his participation in a fraudulent tax refund scheme involving identity theft, subscribing to false and fraudulent tax returns, and impersonating an IRS employee and a New York State Department of Labor official. According to court documents, from about 2006 through about 2010, Brewton prepared and filed with the IRS various federal income tax returns in his own name and in the names of others that fraudulently inflated income and withholding figures. For example, Brewton falsely reported that his wages for the calendar year 2006 were $783,981 and that $359,750 in taxes had been withheld by his employers. Brewton also fraudulently obtained tax refunds in other people’s names by stealing the names or defrauding the people into giving him their personal identifying information, then filing fraudulent tax returns in their names, and directing that the resulting refunds be sent to his address. On at least one occasion Brewton posed as someone affiliated with the New York State Department of Labor in order to persuade a taxpayer to provide him with the taxpayer’s name, date of birth, and Social Security number. On multiple other occasions, Brewton posed as an employee of the IRS claiming to be an “Audit Group Representative.”

Florida Resident Sentenced for Stolen Identity Tax Refund Scheme
On March 22, 2013, in Miami, Fla., Kilwoind Jones, of Homestead, Florida, was sentenced to 32 months in prison and three years of supervised release for her participation in a stolen identity tax refund scheme. On October 5, 2012, a federal grand jury charged Jones with receiving stolen U.S. Treasury refund checks having forged signatures, with possessing stolen mail and theft of government money. Jones pleaded guilty on January 10, 2013 to theft of government property and aggravated identity theft.  During the plea hearing, Jones admitted to receiving three stolen U.S. Treasury tax refund checks and to depositing the three stolen U.S. Treasury tax refund checks with the forged signatures into her bank account.

Man Sentenced for Participating in Tax Fraud and Identity Theft Scheme
On March 18, 2013, in Los Angeles, Calif., William Gomez-Corzo, who also used the name “William Perez,” was sentenced to 54 months in prison and ordered to pay $1,320,566 in restitution to the IRS. Gomez-Corzo pleaded guilty to one count of theft of public money for his role in a scheme that defrauded the IRS of millions of dollars by filing false income tax returns. According to court documents, Gomez-Corzo and his associates used the names and social security numbers of residents of Puerto Rico to file more than 1,000 false federal income tax returns seeking tax refunds based on the earned income credit. Gomez-Corzo and his co-conspirators used false out-of-state drivers licenses to open private mail boxes to receive the tax refund checks. Gomez-Corzo also pleaded guilty to one count of aggravated identity theft for using an identity stolen from a dead man to obtain a United States passport.

Florida Resident Sentenced for Tax Refund Fraud
On March 11, 2013, in Miami, Fla., David Forbes, of Cooper City, Fla., was sentenced to 48 months in prison, three years of supervised release and ordered to pay $372,342 in restitution. Forbes previously pleaded guilty to the theft of government funds  resulting from his participation in a stolen identity tax refund scheme. According to court documents, Forbes received more than $1,574,791 in tax refunds payments and deposited those funds into his personal and corporate bank accounts. These tax refund payments were obtained by filing false tax returns using stolen personal identification information. During the investigation and prosecution, Forbes consented to the government’s seizure of $888,399.  In addition, other bank accounts were identified and an additional $313,550 was frozen and returned to the government.  

Florida Man Sentenced in Identity Theft Tax Refund Fraud Scheme
On March 7, 2013, in Miami, Fla., Jonathan Torres-Bonilla, of Hollywood, Fla., was sentenced to 192 months in prison, three years of supervised release and ordered to pay $100,388 in restitution to the IRS.  On December 27, 2012, Torres was convicted at trial of two counts of access device fraud and four counts of aggravated identity theft in connection with an identity theft tax refund fraud scheme.  According to court documents, Torres had been observed by plain-clothes police officers at a mall using multiple debit cards at multiple ATMs on November 25, 2011.  When officers searched Torres and his car, they found 28 pre-paid debit cards (loaded with $117,000 in tax refunds), dozens of ATM receipts, and more than $1,700 in cash.  At sentencing, Torres was found to have obstructed justice by lying during his testimony at trial.  

Alabama Defendants Sentenced for Their Role in a Million Dollar Identity Theft Tax Scheme
On March 6, 2013, in Montgomery, Ala., Corey Means was sentenced to 20 months in prison and Melba Wilson was sentenced to eight months home detention for their involvement in a million dollar identity theft tax scheme.  According to court documents, between October 2009 and April 2012, Antoinette Djonret and her co-conspirators used stolen identities to file over 1,000 false tax returns that fraudulently claimed over $1.7 million in tax refunds. Djonret orchestrated this scheme by obtaining stolen identities from multiple sources and establishing an elaborate network for laundering the refund money. Djonret recruited Corey Means, Melba Wilson and others into the conspiracy. Melba Wilson and Corey Means recruited individuals to obtain prepaid debit cards and gave the cards to Djonret. Corey Means also provided addresses to Djonret for receiving prepaid debit cards. The fraudulent tax refunds obtained by the conspiracy were directed to these prepaid debit cards and Djonret and her co-conspirators would then use the cards to obtain the proceeds. Djonret was previously sentenced to 144 months in prison for her role in this scheme and for other criminal conduct.  

Florida Man Sentenced for Tax Fraud and Identity Theft
On March 6, 2013, in Fort Myers, Fla., Keith Stewart was sentenced to 54 months in prison and five years of supervised release.  Stewart pleaded guilty on July 11, 2012 to presenting false claims to the government and aggravated identity theft.  According to court documents, Stewart knowingly prepared and filed false income tax returns with the IRS for fraudulent tax refunds. Stewart also used various means of identification belonging to other people in order to obtain debit cards in their names. At the time of his arrest, he possessed the names and personal information of at least 100 individuals.

Owner of Florida Dry Cleaner Sentenced in Identity Theft Tax Refund Fraud Scheme
On March 1, 2013, in Miami, Fla., Frantz Auguste, of Sunny Isles, was sentenced to 45 months in prison and one year of supervised release on one count of access device fraud and one count of aggravated identity theft in connection with an identity theft tax refund fraud scheme.  According to court documents, law enforcement searched Auguste’s dry cleaning business in North Miami Beach on October 4, 2012, and found the following in a locked room for which Auguste had the only key: (1) Handwritten notes and lists with the personal identification information, including names, dates of birth, and social security numbers, of approximately 100 individuals.  Several of these lists appeared to have originated from a local nursing home and rehabilitation center, (2) Multiple tax refund checks in different individuals’ names, and (3) Multiple tax returns in different individuals’ names.

Florida Man Sentenced in Identity Theft Tax Refund Fraud Scheme
On February 27, 2013, in Miami, Fla., Luis Enrique Ledee Bernard, aka Luis L. Bernard, of Miramar, Florida, was sentenced to 30 months in prison, three years of supervised release and ordered to pay $22,000 in restitution. Bernard pleaded guilty on December 17, 2012 to one count of theft of government funds and one count of aggravated identity theft. On October 9, 2012, Bernard was charged in a seventeen-count indictment in connection with a scheme to obtain fraudulent tax return proceeds. According to the indictment, Bernard deposited nine fraudulent tax refund checks that were fraudulently obtained by using the stolen personal identification information of at least four persons who were deceased.  The proceeds from the nine fraudulent tax return refunds were direct-deposited into Bernard's bank account.

Connecticut Woman Sentenced in Tax Fraud and Identity Theft Scheme
On February 22, 2013, in Hartford, Conn., Damaris Peralta, of Stamford, Conn., was sentenced to 24 months in prison, three years of supervised release and ordered to pay $198,425 in restitution, jointly with her co-defendants.  On October 24, 2012, Peralta pleaded guilty to one count of conspiracy to defraud the IRS. According to court documents, between October and December 2010, Peralta, Hector Medina and others were involved in a conspiracy through which they obtained at least 35 U.S. Treasury tax refund checks by filing fraudulent tax returns, with false W-2 forms attached, on behalf of citizens of Puerto Rico without their knowledge or consent.  As part of the scheme, Matilde Fabian-Pichardo used her position as a bank teller to cash the fraudulent checks presented to her by Medina and others.  Medina kept the majority of the proceeds of the scheme and paid Peralta and others for their assistance. On October 2, 2012, Medina was sentenced to 27 months in prison.  

Florida Man Sentenced for Role in Identity Theft Tax Refund Fraud Scheme
On February 22, 2013, in Miami, Fla., Rodney Saintfleur was sentenced to 159 months in prison and three years of supervised release. Saintfleur pleaded guilty on November 27, 2012 to conspiracy to submit fraudulent claims to the government, access device fraud and aggravated identity theft. According to court documents, Saintfleur and co-conspirators agreed on a plan to use stolen personal identifying information of others to file fraudulent tax returns seeking refunds. Saintfleur obtained documents that listed tens of thousands of names with corresponding dates of birth. He then searched an online proprietary database and fraudulently obtained the social security numbers of more than 23,000 people whose names and dates of birth appeared on the documents. Saintfleur provided these social security numbers to co-conspirators who then filed fraudulent and unauthorized tax returns seeking refunds using the stolen personal identifying information.    

Florida Man Sentenced for Tax Fraud
On February 14, 2013, in Tampa, Fla., Jermaine Lee Lippett was sentenced to 65 months in prison, ordered to forfeit $96,805 and to pay $96,553 in restitution to the IRS. Lippett pleaded guilty on November 2, 2012 to charges of conspiracy, theft of government funds and aggravated identity theft.  According to court documents, Lippett orchestrated a scheme to convert the proceeds of fraudulently acquired federal tax refund checks through legitimate accounts held at a federal credit union. Lippett, acting in complicity with several account holders and a credit union teller, caused fraudulent tax refund checks to be negotiated through legitimate accounts.  He then shared the proceeds with the teller and account holders.

Alabama Woman Sentenced for Stealing Identities for Tax Refunds
On February 8, 2013, in Montgomery, Ala., Angeline Austin was sentenced to 65 months in prison for conspiring to defraud the government regarding claims, fraud in connection with identification documents, fraud in connection with computers and aggravated identity theft. According to court documents, between June 13, 2010 and March 25, 2011, Austin worked for a company that contracts with other companies to manage their business data. As an employee of the contractor, Austin worked at a regional medical center records office. While working at the medical center, Austin stole over 800 names, social security numbers and other personal information from current and former patients. Austin then sold that information to another person for between $6,500 and $8,000. These stolen identities were then used to file fraudulent tax returns.

Three Florida Residents Sentenced for Tax Refund Fraud Scheme Using Stolen Identities of Foreign Nationals
On February 7, 2013, in Miami, Fla., Christian Andres Perin, of Miami, Venancio Oscar Pio, of Doral, and Olga Rosana Garcia, of Miami, were sentenced for their participation in a tax refund scheme using stolen identities of foreign nationals. Perin was sentenced to 87 months in prison and three years of supervised release. Pio and Garcia were each sentenced to 70 months in prison and three years of supervised release. The defendants were also ordered to pay $1,146,745 in restitution. Each of the defendants pleaded guilty to one count of conspiracy to submit false claims to the IRS.  Perin also pleaded guilty to two counts of stealing tax refund checks. According to court documents, Perin obtained identity documents of foreign nationals from individuals living outside of the United States. Pio, in exchange for payment, would then send the identity documents to another individual outside the United States who would manufacture false tax Forms W-2, W-7 and 1040 Individual Income Tax Returns with fictitious employer information, income and withholding amounts. Garcia and other co-conspirators mailed the fraudulent forms to the IRS to obtain tax refunds. The tax refunds were directed into bank accounts or mailboxes controlled by Perin and Garcia. Perin and Garcia then collected the checks, deposited the checks in bank accounts and later withdrew the money.

Dominican Republic Man Sentenced for Tax Fraud and Drug Conspiracies
On February 1, 2013, in Anchorage, Alaska, Isaac Amparo-Vazquez, aka David Feliciano-Sanchez and aka Jesus Angel Quinones-Ortiz, of the Dominican Republic, was sentenced to 57 months in prison and four years of supervised release for his role in drug and tax fraud conspiracies. According to court documents, Amparo-Vazquez also conspired to use stolen Puerto Rican identities to file tax returns and obtain fraudulent income tax refunds. Between January 2010 and March 2012, Amparo-Vazquez and other co-conspirators defrauded the United States by filing false tax returns and claiming millions of dollars in tax refunds to which they were not entitled to receive. To accomplish their tax refund scheme, the conspirators obtained the names and social security numbers of individuals from the Commonwealth of Puerto Rico. They then fabricated individual income tax returns in those names falsely claiming that they were owed thousands of dollars in refunds. Amparo-Vazquez convinced friends and acquaintances to give him their addresses so that U.S. Treasury checks could be sent to the Anchorage area. Amparo-Vazquez also admitted that he obtained false identification documents from the Alaska Department of Motor Vehicles and then used these documents to open a bank account, into which he deposited a U.S. Treasury check. Finally, Amparo-Vazquez admitted that, between December 31, 2011 and January 8, 2012, he conspired with others to arrange for two kilograms of cocaine to be shipped to Alaska for distribution.

Family Members Sentenced in Stolen Identity Refund Fraud Scheme
On February 1, 2013, in Montgomery, Ala., several family members were sentenced for their involvement in a $1.9 million dollar stolen identity refund fraud scheme. Barbara Murry, Veronica Temple and Yolanda Moses were each sentenced to 57 months in prison and ordered to pay $1,908,659 in restitution. Douglas Murry was sentenced to 24 months in prison and ordered to pay $142,038 in restitution.  Almetta Johnson was sentenced to eight months home detention. Lee Moses, Jeffrey Temple and Courtney Johnson were each sentenced to probation. According to court documents, between January 2006 and April 2012, the defendants and their co-conspirators directed over 900 false tax refunds claiming in excess of $1.9 million to several bank accounts they controlled. The conspiracy consisted of two parts. First, the defendants received false tax refunds into their bank accounts and provided a portion of the funds to the third-party preparers. In the second part of the conspiracy, Veronica Temple and her sister, Yolanda Moses, obtained stolen identities from multiple sources. Veronica Temple, Yolanda Moses and others filed false tax returns from their homes and B & B Tax Service which was owned and operated by Barbara Murry. They directed the tax refunds to numerous bank accounts controlled by the defendants and their co-conspirators. Veronica Temple, Yolanda Moses, and Barbara Murry recruited individuals, including Douglas Murry, to open bank accounts in furtherance of the scheme.

Kentucky Woman Sentenced for Filing False Income Tax Returns and Identity Theft
On January 29, 2013, in Bowling Green, Ky., Louisa A. Edmonds, of Elkton Kentucky, was sentenced to 41 months in prison, three years of supervised release and ordered to pay $37,139 in restitution to the IRS.  Edmonds pleaded guilty on August 29, 2012 to five counts of filing a false income tax return with the IRS, fifteen counts of aiding and assisting in the preparation of false income tax returns filed with the IRS, and four counts of identity theft.  According to court documents, Edmonds admitted that she filed false income tax returns for 2005 through 2009, for herself that contained various false deductions.  Additionally, Edmonds admitted that she prepared false income tax returns for others that claimed deductions and credits that they were not entitled to receive. Finally, Edmonds admitted that she knowingly used the identification of another person without permission to make a false claim against the United States by filing a false income tax return with the IRS.  

Husband and Wife Sentenced for Fraud and Identity Theft
On January 30, 2013, in Roanoke, Va., Michelle A. Ferguson, of Roanoke, Va., was sentenced to 29 months in prison for conspiracy to commit fraud and stealing the identities of others. Her husband, William J. Ferguson Jr., was sentenced to 14 months in prison for his participation in the conspiracy to commit fraud.  According to court documents, the Fergusons operated a tax return preparation business out of their Roanoke home and committed fraud in two specific manners. When meeting with clients face-to-face to prepare their taxes, the Fergusons would have their clients sign the return without reviewing its contents. The returns were set-up to have any refunds deposited directly into an account controlled by the Fergusons. To maximum refunds, the Ferguson, without the knowledge of their clients, included phony Schedule C's, Profit and Loss from Business, to the returns. Once the tax refund was received by the Fergusons, they would write a check to each client for a fraction of the total refund received. In addition, the defendants filed false tax returns using stolen social security numbers. The individuals who had their identity stolen did not receive any portion of the proceeds obtained through the false claim for refund.

Tax Preparer Sentenced for Identity Theft and Tax Fraud
On January 29, 2013, in Boston, Mass., Rosa Ivette Colon, of Milford, Mass., was sentenced to 61 months in prison and three years of supervised release for filing hundreds of false income tax returns for her clients and identity theft.  She was also ordered to pay $400,000 in restitution to the IRS. In August 2012, Colon pleaded guilty to a 32-count indictment charging her with aggravated identity theft, filing false claims with the IRS, and forging endorsements on United States Treasury checks. Colon operated a business called X-Press Taxes in Somerville, Mass. During the tax years 2004 through 2010, she prepared hundreds of false income tax returns for her clients. On numerous occasions, when preparing income tax returns for clients, Colon prepared two different versions of the return. Colon gave one version of the return to the client, but filed another version seeking a larger refund with the IRS, and kept the additional fraudulent amount for herself. In addition, Colon submitted false personal income tax returns to the IRS on her own behalf. Colon also unlawfully used the identities of three individuals in connection with her fraudulent tax refund scheme.

Dominican National Sentenced for Identity Trafficking Scheme
On January 29, 2013, in San Juan, Puerto Rico, Rafael Joaquin Beltre-Beltre, formerly of Caguas, Puerto Rico, was sentenced to 63 months in prison for his leading role in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents. In addition Beltre-Beltre will forfeit $424,793 in illegal proceeds and be deported to the Dominican Republic after the completion of his sentence. On September 4, 2012, Beltre-Beltre pleaded guilty to one count of conspiracy to commit identification fraud, one count of conspiracy to commit alien smuggling for financial gain and one count of international money laundering. Beltre-Beltre admitted that he and his co-conspirators sold personal identifying information pertaining to real Puerto Rican U.S. citizens, including minors, and that he knew some of the identities would be used to commit tax fraud and some would be used to fraudulently apply for U.S. passports.

Florida Man Sentenced for Income Tax Fraud
On January 24, 2013, in Tallahassee, Fla., Marvens Jean-Paul, of Opa Locka, Florida, was sentenced to 48 months in prison and ordered to pay $280,285 in restitution. Jean-Paul pleaded guilty in 2012 to two counts of conspiracy to file false claims, seven counts of wire fraud, and four counts of aggravated identity theft based upon his involvement in schemes to file false claims for more than $1 million in federal tax refunds in 2010 and 2011. According to court documents, Jean-Paul admitted to stealing personal identifying information from an office on the campus of a Florida university. Illegally using the information, Jean-Paul and his co-conspirators filed false tax returns. At Jean-Paul’s direction, his co-defendants, Kimle Fils-Aime and Guerline St. Charles, cashed tax refund checks generated by one of the schemes at a bank where they worked as tellers. In addition, Jean-Paul arranged for the illegally obtained tax refunds to be loaded onto prepaid debit cards, which were used to wire transfer cash. Fils-Aime was previously sentenced to 12 months in prison and ordered to pay $86,748 in restitution. St. Charles was previously sentenced to five years’ probation, with eight months’ home detention, and ordered to pay $73,320 in restitution.

Florida Woman Sentenced on Identity Theft and Fraud Charges
On January 23, 2013, in Jacksonville, Fla., Regina Ward, of Gainesville, Fla., was sentenced to 13 months in prison and three years of supervised release for charges related to identity theft, fraud against the United States, and Treasury check fraud.  Ward was also ordered to pay $6,500 in restitution to the IRS.  According to court documents, in February 2012, Ward met with an undercover agent (UC) posing as an individual willing and capable of cashing United States Treasury checks without proper identification.  Ward presented the UC with a Treasury check for $12,727, in the name of another individual.  Ward negotiated a check-cashing fee with the UC and advised that she had other checks that she needed to cash. Ward sold the Treasury check to the UC for $6,500. Later that same month, Ward met with the UC again and attempted to cash two additional Treasury checks.  During the meeting, Ward sold ten stolen identities for the purpose of filing fraudulent federal income tax returns.  She sold these identities for $850 each.

California Woman Sentenced for Filing Tax Returns Using Stolen Identities
On January 23, 2013, in San Francisco, Calif., Taneshia Stephenson was sentenced to 18 months in prison. Stephenson pleaded guilty on October 3, 2012 to conspiring to file false claims. According to her plea agreement, beginning in July 2008, Stephenson helped other individuals obtain fraudulent tax refunds from the IRS based on tax returns that were filed using stolen identities.  Stephenson admitted that each of the tax returns she assisted in filing claimed fictitious Social Security income and withholding as a basis for the fraudulent tax refund. As part of the scheme, Stephenson and her co-conspirators asked the IRS to directly deposit the fraudulent refunds into a bank account that Stephenson could access. In 2008, Stephenson allowed her bank account to be used by another individual for that purpose.

Pennsylvania Man Sentenced for Filing Fraudulent Tax Returns
On January 14, 2013, in Phoenix, Ariz., Espiridion Adrian Lugo, of Pittsburgh, Pa., was sentenced to 54 months in prison and ordered to pay $128,388 in restitution.  Lugo pleaded guilty on October 10, 2012 to conspiring to defraud the United States and aggravated identity theft. According to court documents, between July 2008 and May 2009, Lugo engaged in a scheme to obtain monies from the United States through the submission of fraudulent tax returns.  Lugo submitted nearly three dozen Federal tax returns to the United States in the names of deceased persons from California.  For each of these tax returns, Lugo falsified the deceased individuals' wages, address, income tax withholdings, dependents, tax credits, and other deductions, in order to maximize the tax refund. To conceal his activity from law enforcement, Lugo created a shell company called Uncle Sam’s Tax Service in Buckeye, Ariz. and obtained bank accounts under that business name. In total, Lugo falsely claimed over $279,000 in refund payments.

Four Men Sentenced for Fraudulent Tax Returns and Mail Fraud
On January 10, 2013, in Dayton, Ohio, Elian Zayed, of Westlake, Ohio, was sentenced to 30 months in prison and three years of supervised release for conspiracy and mail fraud. Zayed was also ordered to pay $177,744 in restitution to the IRS. Also on January 10, 2013, Eric J. Howard, of Tampa, Fla., was sentenced to 87 months in prison, three years of supervised release and ordered to pay $177,744 in restitution for mail fraud and aggravated identity theft. On January 3, 2013, Samer Sammor, of Broadview Heights, was sentenced to 18 months in prison and ordered to pay $25,429 in restitution for false claims against the U.S. On December 21, 2012, Lamia Suleiman, of Lutz, Fla., was sentenced to three years of probation and ordered to pay $177,744 in restitution for misprision of a felony. According to court documents, from 2009 to at least August 2011, Zayed, Howard, Suleiman, Sammor and others defrauded the United States by filing false and fraudulent tax returns, many in the names of recently deceased taxpayers. The co-conspirators directed the refunds to controlled locations in Florida. The U.S. Treasury checks generated by the false tax returns were sent by U.S. mail to co-conspirators in Ohio, who then sold and distributed those checks for negotiation at various businesses and banking institutions.

Alabama Woman Sentenced for Identity Theft Conspiracy
On January 2, 2013, in Montgomery, Ala., Nakesha Donaldson was sentenced to 57 months in prison, three years of supervised release, and ordered to pay $781,305 in restitution to the IRS. Donaldson pleaded guilty on September 20, 2012 to conspiracy to defraud the United States, wire fraud and aggravated identity theft.  According to court documents, Donaldson worked at a tax preparation office located in Montgomery, Alabama.  From approximately July 2007 through October 2010, Donaldson and the other conspirators prepared tax returns containing false dependents, income and expenses and claims for false tax refunds.  Additionally, Donaldson possessed and used stolen identities to electronically file false tax returns and claim false refunds.

Chicago Man Sentenced for Tax and Wire Fraud
On January 8, 2013, in Chicago, Ill., Yair Berkowitz, of Chicago, was sentenced to 62 months in prison, two years of supervised release, and ordered to pay $4,069,091 in restitution to the IRS. According to court documents, from 2003 until August 2009, Berkowitz, along with others, participated in a scheme to defraud and obtain money and property from the IRS and various state departments of revenue. Berkowitz and others involved in the scheme, submitted fraudulent state and federal income tax returns using the identities of prisoners and deceased persons. Berkowitz also acknowledged collecting and distributing fraudulently obtained state and federal tax refunds and refunds proceeds from co-conspirators.

Former U.S. Marine Sentenced for Identity Theft Tax Refund Fraud Scheme Targeting U.S. Marines
On December 21, 2012, in Miami, Fla., Jobson Cenor, of North Miami, was sentenced to 57 months in prison and three years of supervised release. Cenor pleaded guilty on October 3, 2012, to one count of wire fraud and one count of aggravated identity theft. According to court documents, Cenor and co-conspirator Dorothy Boulin agreed on a plan to use stolen personal identifying information of individuals to file fraudulent tax returns seeking refunds. In late 2011 and early 2012, Cenor provided Boulin with more than a hundred names, dates of birth, and social security numbers of U.S. Marines, many of whom were serving in Cenor’s unit in Afghanistan. Cenor provided the personal identity information to Boulin by creating draft messages in e-mail accounts with the personal identifying information and then sending Boulin the log-in information for the e-mail accounts. On July 12, 2012, Dorothy Boulin was sentenced to 70 months in prison.

Memphis Woman Sentenced on Tax Fraud Charges
On December 21, 2012, in Memphis, Tenn., Aundria Bryant-Branch was sentenced to 262 months in prison, three years of supervised release and ordered to pay $690,399 in restitution to the IRS. According to the indictment, Bryant-Branch orchestrated a tax refund scheme beginning about 2006 and continuing until approximately June 10, 2008. Bryant-Branch obtained stolen identification information and a stolen “Warrant Book” from the Memphis Police Department. Bryant-Branch would give the stolen identification information to others, who then used it to prepare and electronically file false tax returns with the IRS claiming refunds without the taxpayer’s knowledge.

Former Alabama State Employee Sentenced for Identity Theft and Tax Fraud
On December 14, 2012, in Montgomery, Ala., Natacia Webster, of Montgomery, Ala., was sentenced to 50 months in prison, three years of supervised release and ordered to pay $113,000 in restitution. Webster pleaded guilty in September 2012 to charges of conspiracy, wire fraud and aggravated identity theft. According to her plea agreement, Webster had been an employee in the central records office of an Alabama state agency, which allowed her access to the personal identifying information of numerous individuals. Webster stole identifying information from state databases and provided them to a co-conspirator, Melinda Clayton. Clayton would then use those stolen identities to file false federal tax returns that fraudulently claimed refunds.  Clayton was sentenced earlier in the year to 61 months in prison.

Florida Woman Sentenced for Tax Fraud and Identity Theft
On December 12, 2012, in Tampa, Fla., Belinda Brooks, of Tampa, was sentenced to 66 months in prison for stolen identity refund fraud. Brooks was also ordered to pay a money judgment of $118,882, the proceeds of Brooks' criminal activity. She pleaded guilty on May 25, 2012. According to court documents, Brooks stole the names and social security numbers of other individuals in order to file fraudulent tax returns in their names and obtain tax refunds for the tax years 2008 and 2009. In addition, Brooks filed a false tax return for herself.

Former Basketball Program Supervisor Sentenced for Identity Theft and Tax Evasion
On December 10, 2012, in Manhattan, N.Y., Peter Iulo, a former referee and basketball program supervisor at Chelsea Piers Management, Inc., was sentenced to 24 months in prison, three years of supervised release and ordered to pay $200,000 in restitution to the IRS. Iulo pleaded guilty in June 2012 to one count of conspiracy to defraud the United States, one count of conspiracy to commit identity theft, and four counts of tax evasion. According to court documents and statements made in court, from 1996 through 2008, Iulo worked as a referee for Chelsea Piers’ adult basketball leagues. Chelsea Piers is a sports and entertainment complex in Manhattan where various adult basketball leagues play their games. Referees for the basketball games are paid approximately $40 per game by Chelsea Piers. In any year in which a referee is paid more than $600, Chelsea Piers must report the income to the IRS. Iulo and others participated in a massive identity theft and tax evasion scheme that used stolen identification information to ensure that dozens of referees were rarely, if ever, paid more than $600 per year in their own names. As part of the scheme, Iulo provided Chelsea Piers with false IRS forms that contained the stolen identification information. When Chelsea Piers issued checks payable to the names of the stolen identities, Iulo and other referees who received these checks, endorsed, and then cashed or deposited them. Iulo used numerous identities, including New York City police officers and firefighters who had acted as referees in the past. As a result of the scheme, Iulo avoided having Chelsea Piers report the income he was paid to the IRS, and thereby avoided paying taxes on that income. In addition, Iulo facilitated identity theft and tax evasion by dozens of referees at Chelsea Piers. Iulo also failed to file federal income tax returns between 2005 and 2008.

Florida Man Sentenced for Identity Theft Tax Refund Fraud Scheme
On November 30, 2012, in Miami, Fla., William Joseph was sentenced to 24 months in prison and three years of supervised release. Joseph pleaded guilty on August 31, 2012 to one count of theft of government money and one count of aggravated identity theft. According to court documents, Joseph and seven others were charged in an FBI sting operation. From February 2012 to April 2012, the FBI operated a financial services store in North Miami that accepted fraudulently obtained tax refund checks from individuals looking to cash those checks. In March and April 2012, Joseph cashed or assisted in the cashing 13 fraudulently obtained income tax refund checks, totaling approximately $70,000. He provided fake identification documents to the undercover agent at the store matching the names of the victims on the checks. He also forged the signatures of the victims on the back of some of the checks.

Florida Man Sentenced for Tax Refund Scheme
On November 28, 2012, in Miami, Fla., Marvince Milfort, of North Miami, was sentenced to 24 months in prison and three years of supervised release. Milfort pleaded guilty to four counts of identity theft, one count of theft of public money, and one count of access device fraud. According to court documents, between September 2011 and February 2012, Milfort used stolen Social Security Administration (SSA) documents containing personal identification information of SSA applicants to electronically file false federal income tax returns in the names of the identity theft victims using an online program.  In this way, Milfort claimed IRS tax refunds to which he was not entitled. To execute the scheme, Milfort directed the IRS to deposit the refunds onto debit cards. Upon receipt of the loaded debit cards, Milfort would convert the funds to cash or would use the debit cards to make purchases at local retailers.

Mexican National Sentenced for Trafficking the Identities of Puerto Rican U.S. Citizens
On November 26, 2012, in San Juan, Puerto Rico, Jose Sergio Garcia-Ramirez, formerly of Rockford, Ill., was sentenced to 54 months in prison and ordered to forfeit $35,900. In addition, Garcia-Ramirez, a Mexican national, was ordered to be removed from the United States after the completion of his sentence. On July 17, 2012, Garcia-Ramirez pleaded guilty to one count of conspiracy to commit identification fraud and one count of aggravated identity theft for trafficking of identities of Puerto Rican U.S. citizens and corresponding identity documents. To date, a total of 53 individuals have been charged for their roles in the identity trafficking scheme, and 18 defendants have pleaded guilty. According to court documents, individuals located in the Savarona area of Caguas, Puerto Rico obtained Puerto Rican identities and corresponding identity documents. Other conspirators located in various cities throughout the United States acted as identity brokers and solicited customers and sold Social Security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set. Some identity brokers assumed a Puerto Rican identity themselves and used that identity in connection with the trafficking operation. Their customers generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses. Some customers allegedly obtained the documents to commit financial fraud and attempted to obtain a U.S. passport.  Garcia-Ramirez admitted that he was an identity broker in the conspiracy and operated in Illinois.

Defendant Sentenced for Identity Theft Tax Refund Fraud
On November 19, 2012, in Miami, Fla., Louis Gachelin, of Miami, was sentenced to 28 months in prison and two years of supervised release. Gachelin pleaded guilty on July 13, 2012, to one count of theft of government money and one count of aggravated identity theft. According to court documents and statements made in court, in March and April 2012, Gachelin cashed and attempted to cash 29 fraudulently obtained income tax refund checks totaling approximately $100,000.  

New Mexico Man Sentenced for Stolen Identity Refund Fraud
On November 19, 2012, in Albuquerque, N.M., Douglas Kuester, a tax preparer from Silver City, N.M., was sentenced to 48 months in prison, three years of supervised release and ordered pay $911,000 in restitution. Kuester pleaded guilty in May 2012 to charges of filing false claims and aggravated identity theft. According to court documents, Kuester used stolen identities to file false tax returns which fraudulently claimed refunds.  He would direct the fraudulently obtained refunds to various bank accounts and prepaid debit cards, retaining portions of the proceeds for himself.

Barbados National Sentenced for Using Stolen Identities to File False Claims for Tax Refund
On November 7, 2012, Chicago, Ill., Andrew J. Watts, a Barbados national, was sentenced to 114 months in prison and ordered to pay $1.7 million in restitution. Watts pleaded guilty on July 10, 2012, to one count of mail fraud and one count of aggravated identity theft. According to court documents, between 2007 and 2011, Watts filed false federal income tax returns in the names of deceased taxpayers seeking fraudulent refunds. Watts either signed the name of the deceased taxpayer to the tax return or would falsely list himself as the deceased taxpayer’s representative. As part of the scheme, Watts filed over 470 false federal income tax returns, claiming fraudulent refunds in excess of $120 million. Watts directed the IRS to either mail the refund checks to an address he controlled or to electronically deposit the refund into a bank account under his control.

Arizona Woman Sentenced for Role in Tax Refund Scheme
On November 5, 2012, in Phoenix, Ariz., Gezelle Helena Amaechi was sentenced to 42 months in prison and ordered to pay $386,938 in restitution to the IRS. Amaechi pleaded guilty on August 20, 2012 to conspiracy to commit false claims, wire fraud, and aggravated identity theft. According to court documents, Amaechi and others used stolen identities of disabled individuals to claim more than $1,000,000 in bogus tax returns from the IRS. Amaechi and her associates took several sophisticated steps to conceal their misconduct, including filing the tax returns electronically using their neighbors’ unsecured wireless networks, directing the refunds to prepaid debit card accounts they had obtained under false identities, and recruiting friends and associates to receive the prepaid debit cards by mail at various addresses. Previously sentenced for their roles in the conspiracy include: Shelton Tanner was sentenced on February 6, 2012 to 60 months in prison and Latricia Williams was sentenced on September 21, 2012 to 36 months in prison.

Indiana Woman Sentenced for Filing False Claims for Refunds
On October 31, 2012, in Indianapolis, Ind., Lowkeysha Lipscomb was sentenced to 41 months in prison, three years of supervised release and ordered to pay $42,067 in restitution. According to court documents, Lipscomb filed false claims for refunds using the Social Security Numbers of other individuals both living and deceased. Lipscomb and another co-defendant would prepare fraudulent Forms W-2 and used this information to file false tax returns. The tax refunds were deposited in bank accounts and loadable debit card accounts controlled by the defendants.

Alabama Woman Sentenced for Using Stolen Identities to Obtain Tax Refunds
On October 23, 2012, in Montgomery, Ala., Jacqueline Slaton was sentenced to 70 months in prison and ordered to pay over $100,000 in restitution after pleading guilty to her involvement in a stolen identity refund fraud scheme.  According to court documents, between December 2011 and March 2012, Slaton filed at least 102 fraudulent federal income tax returns using stolen identities. She also filed 102 fraudulent Alabama state tax returns. The total federal and state tax refunds requested was $154,904. Slaton had the tax refunds directed to prepaid debit cards and had the cards mailed to various addresses on a U.S. carrier’s route. A postal employee agreed to collect the prepaid debit cards for a fee.

Ohio Woman Sentenced for Stealing Identities Used in Tax Refund Fraud Scheme
On October 23, 2012, in Cleveland, Ohio, Nelida I. Velasco, of Chardon, was sentenced to 39 months in prison and ordered to pay $47,004 in restitution. Velasco and her co-defendant David T. Tufts pleaded guilty earlier this year to charges including conspiracy to file false tax returns, making false claims, misuse of Social Security account numbers and aggravated identity theft. Tufts was sentenced in May 2012 to 48 months in prison and ordered to pay $71,355 in restitution. According to court records, from in or about March 2009 to in or about September 2010, Tufts and Velasco, along with other co-conspirators, filed at least 35 false 2008 and 2009 federal income tax returns, resulting in a total of at least $155,000 in false claims for refunds. Tufts and Velasco provided the names, Social Security Numbers, and other personal identifiers to a co-conspirator, who then used that information to create false Form W-2s and fraudulent tax returns. Many of the names, Social Security Numbers, and personal identifiers were stolen by Velasco from her then-employer, a medical billing company.

Florida Man Sentenced for Identity Theft Tax Refund Fraud
On October 16, 2012, in Miami, Fla., Kerly Joseph was sentenced to 78 months in prison and three years of supervised release on charges related to identity theft tax refund fraud. Joseph pleaded guilty on July 9, 2012, to one count of access device fraud and one count of aggravated identity theft. According to court documents and statements made in court, on April 27, 2012, Joseph’s apartment contained various items used in the identity theft fraud, including approximately 73 pre-paid debit cards in different names, a notebook containing more than 700 names, dates of birth, and social security numbers, a file folder containing tax returns for numerous individuals and a laptop computer set to an online tax preparation website. Approximately $161,000 in tax refund money had been loaded onto 22 of the pre-paid debit cards. An ATM video also showed the defendant withdrawing money from one of the pre-paid debit cards issued to a victim.

Defendant Sentenced for Role in Fraudulent Tax Refund Scheme
On October 9, 2012, in Charlotte, N.C., Arileyda Amparo, of Lincolnton, was sentenced to 37 months in prison for participating in a scheme to defraud the government by obtaining false and fraudulent income tax refunds. The criminal indictment filed in March 2011 charged seven individuals with participating in the scheme.  According to court documents and court proceedings, from January 2010 through February 2011, the defendants obtained stolen identity information, including names and social security numbers of individuals in Puerto Rico and prepared fraudulent federal tax returns using that information.  The defendants sought fraudulent refunds totaling more than $3 million during 2010 and more than $2 million from January 2011 up until their arrest in mid-February 2011. Five co-defendants previously have been sentenced in the same conspiracy:
• Dania Ramos, of Lincolnton - 48 months in prison.
• Jose de Jesus, aka Jose Ramos, of Vale - 37 months in prison.
• Xiomara Amparo, of Lincolnton - 18 months in prison.
• Mildred DePena, of Lincolnton - 12 months and one day in prison.
• Nelson Jimenez, of Lincolnton - 15 months in prison.
The last defendant named in the indictment, Johan Vargas, of Hickory, remains a fugitive from justice.

New York Man Sentenced for Role in Tax Fraud and Identity Theft Scheme
On October 2, 2012, in Hartford, Conn., Hector Medina, of the Bronx, N.Y., was sentenced to 27 months of in prison, three years of supervised release and ordered to pay $204,000 in restitution for participating in a tax fraud and identity theft scheme. On January 27, 2012, Medina pleaded guilty to one count of conspiracy to defraud the Internal Revenue Service. According to court documents and statements made in court, between October and December 2010, Medina and others obtained at least 35 U.S. Treasury income tax refund checks. The majority of these checks were obtained from filing fraudulent tax returns using the personal information of Puerto Rican citizens without their knowledge or consent.  As part of the scheme, Matilde Fabian-Pichardo used her position as a bank teller in Stamford, Connecticut, to cash the fraudulent checks by using the legitimate accounts of bank customers. This scheme resulted in a loss of approximately $185,000 to the Internal Revenue Service. In addition, members of the conspiracy cashed 19 fraudulently obtained state tax refund checks from New York and North Carolina, resulting in an additional loss of approximately $19,000.  Fabian-Pichardo also has pleaded guilty and awaits sentencing.

North Carolina Men Sentenced in Identity Theft Scheme  
On October 1, 2012, in Raleigh, N.C., Jeffrey Glenn Toohey and Christopher Fleming were sentenced to prison for their roles in an identity theft scheme. Toohey was sentenced to 125 months in prison, five years of supervised release, and ordered to pay a $600 special assessment and $261,354 in restitution. Fleming was sentenced to 30 months in prison, three years of supervised release, and ordered to pay a $300 special assessment, and $204,799 in restitution.  According to court documents, Toohey fraudulently opened credit card accounts using stolen identities. Once the fraudulent accounts were opened, Toohey and Fleming purchased items using the fraudulent accounts. Further in October 2010, Toohey and Fleming broke into a tax preparation office, stealing over 300 files containing personal information of tax clients. After the tax files were stolen, Toohey filed 2010 tax returns in the names of the clients and directed the tax refunds to either debit cards, which were mailed to addresses which Toohey and Fleming knew were vacant, or to bank accounts that were opened, using fraudulent and unauthorized information. When the tax refund proceeds were received, Toohey and Fleming used the funds to purchase various items.

Fiscal Year 2012 - Identity Theft Schemes

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