FORMER CORRECTIONS OFFICERS TO SERVE 120 MONTHS FOR IDENTITY THEFT, TAX FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, June 3, 2014

Former Alabama Corrections Officers Sentenced for Identity Theft and Tax Fraud

Bryant Thompson was sentenced today to serve 120 months in prison and Quincy Walton was sentenced to serve 84 months in prison for their roles in a stolen identity refund fraud scheme, announced Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama.  Thompson and Walton, both former Alabama corrections officers, were convicted of conspiracy to defraud the United States following a week-long jury trial in January 2014.  Thompson was also convicted of seven counts of wire fraud and seven counts of aggravated identity theft, and Walton was also convicted of one count of aggravated identity theft.  In addition to their prison sentences Thompson and Walton have been ordered to pay $176,114 in restitution.

According to evidence introduced at trial, Thompson was assigned to the shift clerk position at an Alabama state prison, which gave him access to the personal identifying information of every inmate in the custody of the Alabama Department of Corrections, past and present.  Thompson and Walton, his former co-worker, used information stolen from the databases to file false federal income tax returns in the names and Social Security numbers of inmates.

According to the evidence introduced at trial, the investigation revealed that several internet protocol (IP) addresses were used to file the fraudulent tax returns, including one IP address directly assigned to Thompson’s residence at the time certain tax returns were filed.  Circumstantial evidence tied both Thompson and Walton to the other IP addresses.

Also according to the evidence introduced at trial, the two directed the stolen tax refunds onto prepaid debit cards and requested other refunds in the form of U.S. Treasury checks.  Evidence showed that the cards and checks were mailed to several addresses associated with Thompson and Walton in Montgomery and Prattville, Alabama, and that several of the checks were cashed at a local retail store by Walton’s uncle and by a local check casher.  During this time, Thompson purchased a new paint job and new rims for his SUV and later purchased a BMW.

According to evidence from the sentencing, altogether Thompson and Walton filed over 180 false tax returns claiming over $750,000 in tax refunds.  The IRS was able to identify many of the returns as fraudulent when filed and did not pay the refunds claimed, but was defrauded into issuing a total of $176,114 in improper refunds.

The case was investigated by IRS-Criminal Investigation and was prosecuted by Trial Attorneys Jason Poole and Alexander Effendi of the Tax Division, with the assistance of the U.S. Attorney’s Office for the Middle District of Alabama.

CORRECTIONS OFFICERS CONVICTED OF TAX FRAUD & IDENTITY THEFT

FROM:  JUSTICE DEPARTMENT 
Monday, January 27, 2014
Alabama Jury Convicts Current and Former Corrections Officers of Identity Theft and Tax Fraud

Following a week-long trial, a jury in the Middle District of Alabama convicted Bryant Thompson and Quincy Walton of conspiracy to defraud the United States on Jan. 24, 2014, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama.  Thompson, an Alabama corrections officer, was also convicted of seven counts of wire fraud and seven counts of aggravated identity theft, and Walton, a former Alabama corrections officer, was also convicted of one count of aggravated identity theft.

According to evidence introduced at trial, Thompson was assigned to the shift clerk position at an Alabama state prison, which gave him access to the personal identifying information of every inmate in the custody of the Alabama Department of Corrections, past and present.  Thompson and Walton, his former co-worker, used information stolen from the databases to file false federal income tax returns in the names and Social Security numbers of inmates.  All of the inmates testified that they did not consent to the filing of the tax returns in their names, and many testified that they did not know tax returns were filed in their names until being called as witnesses in this trial.

According to the evidence introduced at trial, the investigation revealed that several internet protocol (IP) addresses were used to file the fraudulent tax returns, including one IP address directly assigned to Thompson’s residence at the time certain tax returns were filed.  Circumstantial evidence tied both Thompson and Walton to the other IP addresses.

Also according to evidence introduced at trial, Thompson and Walton directed stolen tax refunds onto prepaid debit cards and requested other refunds in the form of U.S. Treasury Checks.  Evidence showed that the cards and checks were mailed to several addresses associated with Thompson and Walton in Montgomery and Prattville, Ala., and that several of the checks were cashed at a local retail store by Walton’s uncle and at a local check casher.  During this time, Thompson purchased a new paint job and new rims for his SUV and later purchased a BMW.

At sentencing, Thompson and Walton face a statutory maximum sentence of five years in federal prison for the conspiracy count and a statutory minimum of two years in prison for each aggravated identity theft conviction.  Thompson also faces a statutory maximum of 20 years in prison for each wire fraud count.  In addition to prison time, Thompson and Walton also face the possibility of fines and restitution to the IRS and other victims.  Their sentences will be determined by a federal judge after consideration of the sentencing guidelines and statutory factors.
         
The case was investigated by IRS-Criminal Investigation and was prosecuted by Trial Attorneys Justin Gelfand, Jason Poole and Alexander Effendi of the Tax Division, with the assistance of the U.S. Attorney’s Office for the Middle District of Alabama.

CORRECTIONS OFFICER INDICTED FOR STOLEN IDENTITY TAX REFUND FRAUD

FROM: U.S. DEPARTMENT OF JUSTICE
Friday, March 8, 2013
Alabama Corrections Officer and Former Corrections Officer Indicted for Stolen Identity Tax Refund Fraud

A 29-count indictment was unsealed today in Montgomery, Ala., charging Bryant Thompson, an Alabama corrections officer, and Quincy Walton, a former Alabama corrections officer, with federal tax crimes, the Justice Department and the Internal Revenue Service (IRS) announced. Thompson and Walton are both charged with one count of conspiracy to defraud the United States; Thompson is additionally charged with 10 counts of wire fraud and 10 counts of aggravated identity theft, and Walton is additionally charged with four counts of theft of government money and four counts of aggravated identity theft.

According to the indictment, Thompson, a corrections officer at the Alabama Department of Corrections, unlawfully obtained the names and Social Security numbers of inmates in the custody of the state of Alabama and caused to be filed false tax returns in the names of those inmates. The IRS issued tax refund checks in the names of inmates whose identities Thompson unlawfully obtained and Walton cashed those checks.

An indictment is merely a formal charge by the grand jury. The defendants are presumed innocent unless and until proven guilty.

If convicted, Thompson and Walton face a maximum sentence of five years in federal prison for the conspiracy count, a maximum of 20 years for each wire fraud count, a maximum of 10 years for each theft of government money count and a minimum of two years for aggravated identity theft. In addition to prison time, Thompson and Walton also face the possibility of fines and restitution to the IRS and other victims.

The case was investigated by IRS Criminal Investigation and is being prosecuted by Trial Attorneys Alexander R. Effendi and Justin K. Gelfand of the Justice Department’s Tax Division.