SOUTHERN TAX FRAUD CONSPIRACY: TWO PLEAD GUILTY

The following excerpt is from the Department of Justice website:

Monday, September 12, 2011
WASHINGTON – Valerie Byrd and Isaac Dailey, both residents of Montgomery County, Ala., each pleaded guilty to one count of conspiring to defraud the United States, the Department of Justice and the Internal Revenue Service (IRS) announced today.
According to court documents, between February 2011 and April 2011, Byrd conspired with others to fraudulently obtain tax refunds. The conspiracy involved using stolen identities to file false income tax returns claiming refunds. Byrd opened up four bank accounts to receive tax refunds from the scheme. Thirty different refunds, issued in the name of 30 different individuals, were deposited into the bank accounts. To disburse these proceeds, Byrd would transfer the funds to her co-conspirators or withdraw cash. Byrd retained a portion of the proceeds for herself.
Isaac Dailey was previously indicted by a federal grand jury sitting in Montgomery, Ala., on Dec. 14, 2010, on a variety of charges stemming from a large-scale tax fraud and identity theft conspiracy based in Montgomery. According to court documents, the conspirators used stolen identities to file millions of dollars in false tax returns claiming fraudulent refunds over a two-year period in 2009 and 2010. Between January of 2009 and May of 2010, Dailey was responsible for funneling tens of thousands of dollars in false tax refunds to his co-conspirators. Dailey permitted his co-conspirators to deposit fraudulent tax refunds into his bank account. Dailey would withdraw the money, provide the funds to various co-conspirators and retain a portion of each of these transactions.
Sentencing has not yet been scheduled for either Byrd or Dailey. Both face a maximum of 10 years in prison, three years of supervised release, restitution and a maximum fine of $250,000, or twice the loss caused by the offense.”