Examples of Questionable Refund Investigations - Fiscal Year 2013

The following examples of questionable refund investigations 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.

California Woman Sentenced for Filing False Tax Returns
On April 24, 2013, in San Francisco, Calif., Charleszetta Brown, aka Candice Taylor, of Antioch, Calif., was sentenced to 41 months in prison and ordered to pay $318,000 in restitution. Brown pleaded guilty on December 19, 2012 to conspiring to file false tax returns. According to her plea agreement, beginning in June 2008, Brown participated in a scheme to obtain fraudulent tax refunds from the IRS by filing false tax returns. Brown knew the returns were false when she filed them because the individuals whose names appeared on the tax returns did not supply the information used to prepare the returns. In many instances, the person whose name appeared on the return did not give permission to have the tax return filed at all. In order to carry out the scheme, Brown used her own bank account, as well as bank accounts of others involved in the scheme, to receive the fraudulent refunds. Then the money would be withdrawn by the account holder who split the proceeds with Brown. As part of the scheme, Brown was assisted by others who supplied names and bank account information for use in the false filings.

Arizona Woman Sentenced for Fraudulent Tax Return Scheme
On April 19, 2013, in Tucson, Ariz., Shaneika Earline Sims, of Casa Grande, Ariz., was sentenced to 30 months in prison, three years of supervised release and ordered to pay $403,002 in restitution. Sims pleaded guilty on November 7, 2012 to conspiracy to defraud the government through false claims. According to court document, from March 13, 2010, and continuing through January 28, 2012, Sims and others conspired to defraud the United States government by filing false and fictitious tax returns which wrongly claimed refunds. At least 150 false federal individual income tax returns were filed claiming $548,653 in unjustified refunds. Sims and others prepared the false federal income tax returns. A co-defendant offered to pay various sums of money to people whose identities were used. Some of the identities used were passed to her by an incarcerated co-defendant, including names, social security numbers and dates of birth. Some of the false claims for refunds were filed in the names of inmates in state and local detention facilities. Sims and others electronically submitted the false income tax returns to the IRS. Sims also filed false and fraudulent individual income tax returns in California. At least 86 additional returns seeking $315,264 were linked to Sims through common Internet Protocol (IP) addresses and bank accounts. On January 16, 2013, co-defendant Corleen Ladawn Thompson, of Casa Grande, Ariz., was sentenced to 37 months in prison and three years of supervised release. Thompson’s daughter and co-defendant, Desheray Gulley, was sentenced on April 4, 2013 to 60 months of supervised probation.

Man Sentenced for Inmate Tax Fraud Scheme
On April 18, 2013, in Panama City, Fla., Michael William Joseph, III, formerly an inmate in the Florida Department of Corrections, was sentenced to 63 months in prison for his involvement in an inmate tax fraud scheme. Joseph was also ordered to pay $37,196 in restitution to the IRS and forfeit $29,514 in United States currency as proceeds of his crimes. According to court documents, Joseph pleaded guilty to 41 counts including: conspiracy to defraud the government with respect to claims, conspiracy to commit mail fraud, filing false claims against the government and theft from the government. Joseph conspired with others to file 81 false claims for tax refunds against the government in the names of 41 inmates incarcerated in Florida Department of Corrections from February 7, 2008, through July 10, 2012. Most of the false refunds were directed to a bank account under the control of Joseph or were sent in checks to the residence of Joseph’s mother.

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.

Georgia Woman Sentenced for Tax Fraud
On April 16, 2013, in Statesboro, Ga., Lequitor Hopkins was sentenced to 71 months in prison, three years of supervised release and ordered to pay $135,504 in restitution to the IRS. Hopkins pleaded guilty in November 2012 to conspiracy to defraud the government by false claims. According to court documents, from February 2008 through August 2008, Hopkins and others conspired to defraud the government by filing false income tax returns for tax years 2006 and 2007.

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 were filed between tax years 2007 and 2009. 

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.

Ohio Income Tax Preparer Sentenced for Claiming False Tax Refunds
On April 9, 2013, in Cincinnati, Ohio, Latrina R. Williams was sentenced to five years of probation including 21 months of house arrest and ordered to pay $152,124 in restitution to the IRS. Williams pleaded guilty on November 7, 2012 to filing false claims for federal income tax refunds. According to court documents, during the 2006 through 2009 tax years, Williams operated an income tax return preparation business from her residence. The majority of the income tax returns she prepared and electronically filed contained fictitious Schedule C’s for small businesses claiming to be child care businesses. Many of the fictitious Schedule C’s only claimed gross receipts, but no expenses. Most of Williams’ clients had little or no legitimate income. By fabricating the Schedule C income, she maximized the claimed Earned Income Tax Credit, resulting in a large income tax refund for her clients to which they were not entitled. Williams had the false income tax refunds deposited either into her bank account or into her associates bank account. The money was withdrawn in cash and her clients were given a portion of their income tax refund.  Williams kept a large portion of the income tax refunds for herself.

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.

Conspirators Sentenced for Their Roles in Tax Refund Scam
On April 4, 2013, in Statesboro, Ga., Annie Hopkins was sentenced to 66 months in prison and three years of supervised release. Kizvwarida Hopkins was sentenced to 52 months in prison and three years of supervised release. Both were ordered to pay $135,504 in restitution to the IRS. Each defendant previously pleaded guilty to one count of conspiracy to defraud the government with respect to false claims. According to court documents, the defendants filed false returns and helped others to file false federal income tax returns. Members of the conspiracy recruited individuals to provide their personal information and used other individuals’ personal identification without consent. The conspirators created false Forms W-2 and federal income tax returns for 2006 and 2007, which were filed with the IRS. These filed returns claimed tax refunds to which the recruited individuals and others were not entitled. Members of the conspiracy, received the checks, forged endorsements, negotiated the cashing of the checks and distributed the funds. Members of the conspiracy distributed and kept part of the proceeds.

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.”

California Man Sentenced for His Role in Tax Refund Scam
On March 19, 2013, in San Francisco, Calif., Clexton Ward was sentenced to 24 months in prison. Ward pleaded guilty on August 22, 2012 to one count of conspiracy to file false claims. According to court documents, Ward participated in a conspiracy to file false income tax returns electronically with the IRS. As part of the conspiracy, he gathered and supplied the names, personal identifying information and bank accounts that were used to file the false tax returns. Ward acknowledged that the false tax returns requested that the fraudulent refunds be deposited into various bank accounts controlled by either him or by his co-conspirators, and that he and his co-conspirators split the proceeds from the fraudulent refunds.

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 Man Sentenced for Tax Fraud and Identity Theft
On March 18, 2013, in Tampa, Fla., Russell B. Simmons, Jr. was sentenced to 180 months in prison and ordered to forfeit a 2005 Bentley, more than $100,000 in jewelry, $25,000 cash and more than $118,000 worth of fraudulently obtained tax refunds. Simmons pleaded guilty on December 11, 2012 to one count of wire fraud and one count of aggravated identity theft. According to court documents, Simmons engaged in tax fraud at his business, Simmons Auto Sales. Simmons was selling vehicles in exchange for United States Treasury checks obtained from the filing of fraudulent federal income tax returns.  The fraudulently obtained Treasury checks that Simmons received were for a much higher value than the sales price of the vehicles sold.  Simmons negotiated the checks and laundered the proceeds through his business accounts.  The investigation also revealed that Simmons filed fraudulent tax returns from his computer located at his business, and maintained a ledger that contained numerous personal identifiers associated with the fraudulent filings.

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 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.  

New York Woman Sentenced for Filing False Tax Returns     
On March 8, 2013, in Rochester, N.Y., Dawn White, of Elmira, N.Y., was sentenced to 33 months in prison and ordered to pay $67,926 in restitution to the IRS. White was convicted by a federal jury of conspiracy and filing false federal income tax returns. According to court documents, White and her sister, Jennifer Ford, filed income tax returns in 2005 and 2006 that contained false wage and tax withholding information. For the 2005 tax year, White submitted an income tax return claiming to have earned $94,000 from General Revenue Corporation with $39,000 withheld in federal taxes. As a result, White claimed a refund of approximately $21,000. In actuality, White earned about $4,000 and had only $325 in taxes withheld. In total, thirteen false tax returns were filed. Jennifer Ford was convicted in January 2012 of conspiracy and filing false income tax returns and is awaiting sentencing.

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.  

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 income 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 for an identity theft tax refund fraud scheme. Co-conspirators then filed fraudulent and unauthorized tax returns seeking refunds using the stolen personal identifying information provided by the defendant.    

Three Sentenced for Scheme to Cash Fraudulent Refund Checks  
On February 21, 2013, in Orlando, Fla., three individuals were sentenced for their roles in a conspiracy to defraud the government.  Eliseo Dela Rosa, of Orlando, was sentenced to 15 months in federal prison. Ana Torres, of Kissimmee, was sentenced to 24 months probation. Ada Lopez, of Orlando, was sentenced to six months' home confinement as a condition of four years probation.  All three pleaded guilty on November 16, 2012.  According to court documents, Dela Rosa and others fraudulently received IRS refunds and stimulus checks. They then cashed or deposited the checks at a bank where Torres and Lopez worked as bank tellers.  Between May 2007 and July 2008, Dela Rosa took several Treasury checks to Lopez and Torres. Lopez cashed about $244,000 in checks.  Between May 2, 2007, and September 11, 2007, Torres cashed a total of approximately $46,000 in checks.  

Idaho Man Sentenced for Making False Claims to the IRS
On February 20, 2013, in Coeur D'Alene, Idaho, Gary Raymond Harvey, of Peck, Idaho, was sentenced to 36 months in prison, three years of supervised release and ordered to pay $ 85,217 in restitution. Harvey pleaded guilty to making false claims for a refund on November 1, 2012. During the fourth day of his trial, Harvey admitted that he knew he was not entitled to the refunds he claims and changed his plea to guilty on ten counts charged in the indictment. According to trial evidence, Harvey filed tax returns for an entity, The Organic Assembly of Circle JB, claiming that the entity was entitled to tax refunds ranging from $8,851 to $54,080, for tax years 2002 through 2010.

Two Missouri Residents Sentenced for Fraudulent Tax Scheme
On February 15, 2013, in Fairview Heights, Ill., Phyllis Bradford and Andre Craig, both of St. Louis, Mo., were sentenced for their roles in a fraudulent tax scheme. Bradford was sentenced to five years probation and ordered to pay $45,740 in restitution. Craig was sentenced to 15 months in prison, one year of supervised release and ordered to pay $5,621 in restitution. According to court documents, Bradford, Craig and others falsely prepared and provided Forms W-2 to friends and relatives for the purpose of enabling them to file false federal income tax returns and receive false federal tax refunds. The W-2 forms were falsified to represent that certain individuals were employees of Masters Touch Cleaning Services, Inc. The W-2 forms also falsely represented wages paid, false federal income taxes withheld, false Social Security taxes withheld, and false Medicare taxes withheld.

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.

Five Individuals Sentenced in Related Tax Refund Schemes
On February 14, 2013, in Los Angeles, Calif., five defendants were sentenced for participating in related schemes to manipulate and defraud the First-Time Homebuyer Credit. Tanooa Sparks, of Gardena, was sentenced to 12 months and one day in prison and ordered to pay $338,926 in restitution to the IRS. Sparks pleaded guilty in September 2012 to one count of conspiracy to submit false claims to the IRS and two counts of submitting false claims to the IRS. Nadjara Payne, of Inglewood, was sentenced to eight months in prison and ordered to pay $173,358 in restitution to the IRS. Payne pleaded guilty in March 2011 to one count of conspiracy to submit false claims to the IRS and one count of use of one or more unauthorized access devices, namely debit card account numbers. Crystal Bennett, of Gardena, was sentenced to four months in prison and ordered to pay $105,353 in restitution to the IRS. Bennett pleaded guilty in November 2010 to conspiracy to submit false claims to the IRS. Dontray Greer, of Los Angeles, was sentenced to eight months in prison and ordered to pay $155,000 in restitution to the IRS. Greer pleaded guilty in March 2011 to conspiracy to submit false claims to the IRS and possession of fifteen or more unauthorized access devices. Gina Smith, of Las Vegas, Nevada, was sentenced to three years probation, including six months home detention, and ordered to pay $77,253 in restitution to the IRS. Smith pleaded guilty in November 2010 to conspiracy to submit false claims to the IRS. According to a sentencing memorandum filed by the defense for Greer, Greer and others used their own personal identifying information and/or that of others to file 2008 tax returns that falsely claimed the First-Time Homebuyer Credit.  The resulting tax return payments were then directed into bank accounts or onto VISA debit cards controlled by the defendants. Greer and others assisted in obtaining personal information from susceptible individuals, some homeless and drug addicted, to manipulate the government’s First-Time Homebuyer Credit program and use the proceeds from their scheme to better themselves and purchase personal items.  Although the defendants and the individuals they recruited never purchased homes, they filed, or assisted in the filing of, tax returns in 2009. The participants who provided the information received between $500 and $1000 for their cooperation in the scheme.

Ohio Woman Sentenced for Tax Crimes
On February 13, 2013, in Cleveland, Ohio, Rhoda A. Calloway was sentenced to 15 months in prison, three years of supervised release and ordered to pay $93,249 in restitution. Calloway pleaded guilty in November 2012 to one count of conspiracy to submit false claims and 34 counts of submitting false claims for the tax years 2004, 2005, 2006 and 2007. Calloway and her co-conspirators executed a scheme to prepare false tax returns for individuals. According to court documents, they recruited claimants who they knew to be unemployed and who did not recently file tax returns. They promised the claimants could obtain government grant money or other “free” government money or jobs upon completion of an application. Instead of signing applications for the promised grant money or free government money, Calloway caused some claimants to unknowingly sign tax returns. False tax returns were filed for the claimants, using fictitious income figures used to maximize the Earned Income Tax Credit, resulting in false tax refunds. Calloway and her co-conspirator obtained the false refunds and used the funds for their personal use.

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.

Illinois Women Sentenced for Fraudulent Tax Scheme
On February 6, 2013, in Fairview Heights, Ill., Angenita M. Smith, of Alton, Ill., was sentenced to 24 months in prison and two years of supervised release. Tammy M. Smith, of Alton, Ill., was sentenced to 26 months in prison and three years of supervised release. Each woman was also ordered to pay $54,317 in restitution. According to court documents, they were charged in July 2012, along with six other individuals, with conspiracy, filing a false federal income tax return and making false statements to IRS Criminal Investigation agents. The convictions stem from the Smiths’ conduct for falsely preparing and providing Forms W-2 to friends and relatives for the purpose of enabling them to file false federal income tax returns and receive false federal tax refunds. The W-2 forms falsely represented that certain individuals were employees of a cleaning services business, as well as falsely represent wages paid, federal income taxes withheld, Social Security taxes withheld, and Medicare taxes withheld. When questioned, both Smiths lied to federal investigators.

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.

Multiple Defendants Sentenced for Federal Tax Crimes
On January 28, and February 1, 2013, in Miami, Fla., multiple defendants were sentenced for their participation in a nationwide conspiracy to defraud the United States with respect to multiple counts of filing false claims for tax.
• Michael D. Beiter, Jr., formerly of Coral Springs, Fla., was sentenced to 300 months in prison and three years of supervised release.
• David Clum, Jr., of Whites Creek, Tenn., was sentenced to 293 months in prison and three years of supervised release.
• Christopher Marrero, of Davie, Fla., was sentenced to 180 months in prison and three years of supervised release.
• Dale Peters, of San Mateo, Calif., was sentenced to 144 months in prison and three years of supervised release.
• Penny Jones, of Rigby, Idaho, was sentenced to 144 months in prison and three years of supervised release.   
Beiter, Clum, Marrero, Peters and Jones were also ordered to pay $5,362,039 in restitution to the IRS.  According to court documents, the scheme resulted in filing tax returns for at least 180 clients from 30 different states, requesting more than $160 million in fraudulent tax refunds. The tax returns falsely reported the amount of their personal debt obligations as both income and as federal tax withholding. The fictitious income and withholding was reported to the IRS on Forms 1099-OID.
Two clients of the scheme were also sentenced as follows:  
• On January 28, 2013, John Michael Smith Jr., of Hidden Hills, Calif., was sentenced to 36 months in prison, three years of supervised release and ordered to pay $208,312 in restitution to the IRS.
• On September 10, 2012, Philip Butcher, formerly of Rogers, Ark., was sentenced to 19 months in prison, three years of supervised release and ordered to pay $542,769 in restitution to the IRS.

Ohio Man Sentenced for Tax and Mortgage Fraud
On January 30, 2013, in Cleveland, Ohio, Steven R. Hinz was sentenced to 108 months in prison and three years of supervised release for his role in tax and mortgage fraud. Hinz was also ordered to pay more than $500,000 in restitution. According to court documents, Hinz promoted a scheme to defraud the United States by filing false federal income tax returns claiming large tax refunds using the so-called “OID process.” The OID process involved the preparation of fictitious IRS Forms 1099-OID, Original Issue Discount, falsely reporting that financial institutions, creditors, and other entities had withheld large amounts of federal income tax on behalf of the defendants and other taxpayers, with respect to non-existent income. Based on these fictitious withholdings, at least 17 false tax returns for the year 2008 were filed with the IRS, claiming false refunds totaling over $3,000,000. Under the scheme, taxpayers recruited by Hinz were to pay 20 percent of their refunds to Hinz and a partner, split equally between them, sometimes referred to as commissions and sometimes labeled as “donations.” In addition, from approximately December 2006 through May 2009, Hinz conducted his real estate business in part through a scheme to defraud two federally-insured banks that provided mortgage loans to the investors. The scheme was carried out through the filing of false mechanic’s liens for work not actually done and the providing of undisclosed down payment assistance to the investors. The scheme was designed to induce the banks to make mortgage loans based on false representations concerning the true price and value of the properties, the sources of down payments, and the disposition of loan proceeds.

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.

Kansas Woman Sentenced for Filing False Claims for Refunds
On January 15, 2013, in Kansas City, Mo., Shirley J. Oyer, of Overland Park, Kansas., was sentenced to six months in prison and three years of supervised release of which six months will be served on home confinement and ordered to pay $92,974 in restitution. Oyer pleaded guilty in September 2012 to filing false claims for tax refunds. According to court documents, Oyer and other conspirators utilized false Forms 1099-Original Issues Discount (OID) as part of a tax refund scheme that was promoted from July 2008 through September 2011. Oyer was a promoter and branch manager and assisted individuals in preparing and filing fraudulent returns claiming $12.4 million in refunds.

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.

Arizona Woman Sentenced for Filing Fraudulent Tax Returns
On January 16, 2013, in Tucson, Ariz., Corleen Ladawn Thompson, of Casa Grande, Ariz., was sentenced to 37 months in prison, three years of supervised release and was ordered to pay $403,002 in restitution. Thompson pleaded guilty on November 7, 2012, to conspiracy to defraud the government. According to court documents, from March 13, 2010, and continuing through January 28, 2012, Thompson and others conspired to defraud the government by filing false and fictitious tax returns which falsely claimed refunds. At least 150 false federal individual income tax returns were filed claiming $548,653 in false refunds. Thompson offered to pay money to people whose identities were used. Thompson provided or was provided names, social security numbers and dates of birth to use in filing false federal income tax returns. Some of the identity information used by Thompson belonged to inmates at state and local detention facilities. Thompson and others electronically submitted the false income tax returns to the IRS through the Internet.

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.

Prison Inmate Sentenced for Role in Tax Fraud Scheme
On December 12, 2012, in Kansas City, Mo., Kevin D. Dunham, an inmate at the Western Missouri Correctional Center, was sentenced to 60 months in prison. Dunham pleaded guilty on August 6, 2012, to preparing false tax returns for inmates in 2008 and 2009 while he was incarcerated at the Farmington Correctional Center and the Western Missouri Correctional Center. According to court documents, Dunham obtained inmates’ names and Social Security numbers and created false Forms 1040EZ. Dunham also prepared false Forms W-2 on a typewriter he had in his cell, and filed those false Forms W-2 along with the false Forms 1040EZ. The returns were mailed to inmates’ families outside the prison, who forwarded them to the IRS. The refund checks were then sent to the inmates’ families, who divided the money between themselves, the inmates, and Dunham.

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.

Three Individuals Sentenced for Participation in Tax Refund Fraud Scheme
On December 14, 2012, in Miami, Fla., Ralph Armand, of Miramar, Fla., was sentenced to 21 months in prison and two years of supervised release for his participation in a tax refund scheme. On December 7, 2012, Dwayne Solomon, of Hialeah, Fla., was sentenced to 24 months in prison and two years of supervised release. Jude Alcindor, Jr., aka “Junior,” of Miami, Fla., was sentenced on October 5, 2012, to 12 months and one day in prison and two years of supervised release. Alcindor and Solomon pleaded guilty to one count of conspiracy to defraud the government by filing a false claim.  Armand was convicted of the same charge on September 27, 2012. According to court documents, the defendants conspired to present a false claim to the IRS for a federal income tax refund of $226,930.

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.

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.

Arizona Woman Sentenced for Tax Conspiracy
On November 26, 2012, in Phoenix, Ariz., Anna Christina Andrade was sentenced to 12 months in prison, three years of supervised release and ordered to pay $63,296 in restitution. Andrade pleaded guilty on August 9, 2012 to false, fictitious, and fraudulent claims against the United States. According to the plea agreement, around December 29, 2000, Andrade and others entered into an agreement to use false names to obtain U.S. postal boxes and obtain fraudulent federal income tax refunds. Andrade admitted to opening the postal boxes and completing a number of false returns claiming erroneous refunds.  Andrade admitted that a total of $63,296 in false refunds was obtained during the course of the conspiracy.

Colorado Man Sentenced for Fraud and Tax Conspiracy
On November 20, 2012, in Denver, Colo., Curtis L. Morris, of Elizabeth, Colo., was sentenced to 120 months in prison, three years of supervised release and ordered to pay $1,916,831 in restitution to the IRS. Morris was found guilty on April 30, 2012, after a three-week jury trial, of three counts of mail fraud, seventeen counts of filing false claims against the United States, and one count of conspiracy to defraud the United States. According to the testimony at trial, Morris, Richard Kellogg Armstrong and others conspired to file false federal income tax returns claiming large tax refunds based upon fictitious federal income tax withholdings taken from bogus Forms 1099-OID for themselves and others. Armstrong, of Prescott, Ariz., was sentenced on August 10, 2012, to 108 months in prison and three years of supervised release.  

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.

California Woman Sentenced for $1.3 Million Tax Refund Fraud Scheme
On November 14, 2012, in Sacramento, Calif., Tomisha Lee McKinnie, of Sacramento, was sentenced to 60 months in prison, three years of supervised release and ordered to pay $962,079 in restitution. McKinnie was sentenced for her role in a scheme to file false tax returns. According to court documents, McKinnie and co-defendants Nadiyah Muhammad Woods and Nakia Renee Vaughn conspired to defraud the United States by filing false tax returns using TurboTax, a commercial Internet tax-filing service. To obtain money from the false tax return filings, the women used a TurboTax service that loaded debit cards with the tax return money after the return is filed and approved. The defendants had the debit cards and checks mailed to various addresses under their control. In addition to filing fraudulent tax returns, the defendants posed as victim taxpayers to activate debit cards, cash checks, and obtain cash, goods, and services. The scheme involved over 280 false tax returns and over 200 victim taxpayers.  

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.

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.

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