GUCCIFER GOES TO JAIL

Thursday, September 1, 2016

Romanian Hacker “Guccifer” Sentenced to 52 Months in Prison for Computer Hacking Crimes

Marcel Lehel Lazar, 44, of Arad, Romania, a hacker who used the online moniker “Guccifer,” was sentenced today to 52 months in prison for unauthorized access to a protected computer and aggravated identity theft.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, Director Bill A. Miller of the U.S. Department of State’s Diplomatic Security Service (DSS) and Special Agent in Charge Brian J. Ebert of the U.S. Secret Service’s Washington Field Office made the announcement.

Lazar pleaded guilty before U.S. District Judge James C. Cacheris of the Eastern District of Virginia on May 25, 2016.

According to admissions made in connection with his plea agreement, from at least October 2012 to January 2014, Lazar intentionally gained unauthorized access to personal email and social media accounts belonging to approximately 100 Americans, and he did so to unlawfully obtain his victims’ personal information and email correspondence.  Lazar’s victims included an immediate family member of two former U.S. presidents, a former member of the U.S. Cabinet, a former member of the U.S. Joint Chiefs of Staff and a former presidential advisor, he admitted.  In many instances, Lazar publically released his victims’ private email correspondence, medical and financial information and personal photographs, according to the statement of facts filed with his plea agreement.

The FBI, DSS and the Secret Service investigated the case.  Senior Counsel Ryan K. Dickey and Peter V. Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Maya D. Song and Jay V. Prabhu of the Eastern District of Virginia are prosecuting the case.  The Criminal Division’s Office of International Affairs provided significant assistance.  The Justice Department thanks the government of Romania for their assistance in this matter.

MAN GOES TO PRISON FOR TRYING TO ACQUIRE RICIN

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, March 8, 2016

New York Man Sentenced to 16 Years in Prison for Attempting to Acquire Ricin

Cheng Le, 22, of Manhattan, New York, was sentenced today to 16 years in prison for attempting to acquire ricin, postal fraud and identity theft in relation to a terrorism offense.  Le was convicted on Aug. 27, 2015, following a four-day jury trial before U.S. District Judge Alison J. Nathan of the Southern District of New York, who imposed today’s sentence.  Le’s trial conviction marked the first time in the Southern District of New York a defendant had been convicted at trial of attempting to possess a biological toxin for use as a weapon or of aggravated identity theft during and in relation to a terrorism offense.

The announcement was made by Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Preet Bharara of the Southern District of New York.

“Cheng Le attempted to acquire ricin for use as a lethal weapon, and used a stolen identity to do so,” said Assistant Attorney General Carlin.  “Le sought a ‘risk-free’ way to murder an individual, but thanks to the efforts of law enforcement, his lethal plans were thwarted and the deadly toxin was kept out of his hands.”

“Through the Dark Web, Cheng Le attempted to acquire a lethal toxin,” said U.S. Attorney Bharara.  “In Le’s own words, established at trial, he was looking for ‘simple and easy death pills’ and ways to commit ‘100% risk-free’ murder.  Thanks to the FBI, the NYPD and the Postal Inspection Service, Le’s deadly plot was thwarted and he has been incapacitated by a lengthy term in federal prison.”

According to the allegations contained in documents previously filed in federal court and the evidence presented at trial:

Ricin is a highly potent and fatal toxin with no known antidote.  The dark web is a colloquial name for a number of extensive, sophisticated and widely used online criminal marketplaces, which allow participants to buy and sell illegal items, including ricin.    

In early December 2014, Le contacted a FBI online covert employee (OCE) on a particular dark web marketplace using an encrypted messaging service.  The OCE had taken over the dark web identity from another individual who had a reputation for selling lethal poisons.  After making contact with the OCE, Le inquired, “this might sound blunt but do you sell ricin?”      

Following that initial contact, Le exchanged a series of messages with the OCE concerning his efforts to purchase ricin.  During these messages, Le confirmed his understanding of the lethal nature of ricin, revealed his intent to resell the ricin to at least one secondary buyer, proposed that the OCE conceal the ricin in a single pill in an otherwise ordinary bottle of pills and indicated a desire to obtain more ricin in the future.  Le’s messages to the OCE included the following:

• “If [the ricin’s] good quality, I’ve already had buyers lining up.”

• “Does ricin have antidote? Last I check there isn’t one, isn’t it?”

• “Injection can be difficult to pull off. Ricin doesn’t work immediately. You wouldn’t expect the target to not fight back after being jabbed.”

• “The client would like to know . . . if it is wise to use ricin on someone who is hospitalized. . . .  Injection will leave needle holes on the body which could be found in regular forensic examination. But hospitalized people already have needles in them so it wouldn’t be suspicious. Thing is, would ricin make the death look like someone succumbed to the injuries after an accident and didn’t make it through? In that case then, a little anethestical [sic] gas in the target’s car, get him drowsy when driving, get into an accident, and then kill him in the hospital bed.”

• “I probably told you this before, about mixing one and only one toxic pill into a bottle of normal pills. They all look identical. And as the target takes the medicine every day, sooner or later he’d ingest that poisonous pill and die. Even if there is a murder investigation, they won’t find any more toxin. 100% Risk Free.”

• “If you can make them into simple and easy death pills, they’d become bestsellers.”

• “I’ll be trying out new methods in the future. After all, it is death itself we’re selling here, and the more risk-free, the more efficient we can make it, the better.”

• “Also, besides that one bottle of pills with one poisonous pill in there, can you send some extra loose powder/liquid ricin? I’d like to test something.”

Moreover, during these exchanges, Le revealed to the OCE that he had a specific victim in mind: “someone middle-aged.  Weight around 200 lbs.”

On Dec. 18, 2014, Le directed the OCE to send a quantity of ricin addressed to the name of an individual whose stolen identity Le had assumed at a particular postal box in Manhattan.  On Dec. 22, 2014, the FBI prepared a mock shipment of ricin that was consistent with Le’s request to the OCE.  The sham shipment included a fake ricin tablet concealed in a pill bottle, and a quantity of loose fake ricin powder.  The next day, the sham shipment was delivered to the postal box.  Le, wearing latex gloves, retrieved the sham shipment, opened it and took the contents to his apartment.

When FBI agents entered Le’s apartment to arrest him and search the apartment pursuant to a search warrant, they saw the pill bottle open in his apartment.  The agents also recovered from Le’s apartment an envelope containing castor seeds from which Ricin can be produced.  The agents further observed that Le’s computer was open to the online account that he had used to communicate with the OCE and to Le’s personal email account.

Le was arrested in New York on Dec. 23, 2014, and was later convicted at trial of one count of attempting to possess a biological toxin for use as a weapon, one count of using a fictitious name in furtherance of unlawful business involving the mail and one count of aggravated identity theft during and in relation to a terrorism offense.  In addition to the prison term, Le was sentenced to five years of supervised release.

Assistant Attorney General Carlin joined U.S. Attorney Bharara in praising the outstanding investigative efforts of the FBI’s New York Joint Terrorism Task Force and the U.S. Postal Inspection Service.

This prosecution is being handled by Assistant U.S. Attorneys Ilan Graff and Andrew D. Beaty of the Southern District of New York and Trial Attorney Joseph Kaster of the National Security Division’s Counterterrorism Section.

WOMAN INDICTED FOR ROLE IN FEDERAL TAX FRAUD AND IDENTITY THEFT SCHEME

FROM:  U.S. JUSTICE DEPARTMENT

Tuesday, February 16, 2016

Illinois Woman Charged in Stolen Identity Tax Fraud Scheme

A Poplar Grove, Illinois resident was indicted by a federal grand jury today on six counts of mail fraud, six counts of aggravated identity theft and one count of access device fraud, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Zachary T. Fardon of the Northern District of Illinois.

According to the indictment, Shameka Carr filed fraudulent tax returns with the Internal Revenue Service (IRS) in the names of individuals whose identities she had stolen.  Carr is alleged to have directed the IRS to issue the tax refunds requested on these fraudulent returns in the form of prepaid debit cards and U.S. Treasury checks, both of which were mailed to addresses she had access to in Rockford, Illinois, and surrounding areas.  It is further alleged that Carr used the debit cards and U.S. Treasury checks for her personal benefit.

If convicted, Carr faces a statutory maximum sentence of 20 years in prison for each mail fraud count, 15 years in prison for the charge of access device fraud and a mandatory sentence of two years in prison for each count of aggravated identity theft, which would be in addition to any other term of imprisonment she receives.  Carr also faces potential fines and restitution.

An indictment merely alleges that crimes have been committed.  Defendants are presumed innocent until proven guilty beyond a reasonable doubt.

Acting Assistant Attorney General Ciraolo commended the U.S. Postal Inspection Service, IRS Criminal Investigation and the Boone County Sheriff’s Department, who investigated the case and Trial Attorneys Michael C. Boteler and John T. Mulcahy of the Tax Division, who are prosecuting the case.

MAN SENTENCED FOR ROLE IN ID THEFT AND TAX FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, January 15, 2016

District of Columbia Man Sentenced to 18 Months in Prison for Role in Massive Identity Theft and Tax Fraud Scheme

Worked With Others to Obtain More Than $315,000 in Fraudulent Refunds

A resident of the District of Columbia was sentenced today to 18 months in prison for his involvement in a far-reaching stolen identity refund fraud scheme in which he worked with others to obtain over $315,000 in income tax refunds through the filing of fraudulent federal income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Channing D. Phillips of the District of Columbia, Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation (IRS-CI), Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service, Washington Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.

Ezekiel Raspberry, 39, is among approximately 16 participants in this scheme who have pleaded guilty to charges in the U.S. District Court for the District of Columbia.  According to court documents, the overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $42 million.  Raspberry pleaded guilty on Nov. 10, 2015, to conspiracy to defraud the United States with respect to claims.  Following his prison term, Raspberry will be placed on three years of supervised release. During that time, he must perform 100 hours of community service.  In addition, U.S. District Judge Ellen S. Huvelle of the District of Columbia ordered Raspberry to pay $315,076 in restitution to the IRS.      

According to the government’s evidence, Raspberry participated in a massive and sophisticated stolen identity refund fraud scheme that involved an extensive network of more than 130 people, many of whom were receiving public assistance.  The refunds were sought for tax years 2005 through 2012, often in the names of people, whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners.  In other cases, the refunds were sent to people who were willing participants in the scheme.  The refunds listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia.

According to documents filed with the court, from September 2008 through November 2010, Raspberry and others conspired to defraud the IRS of approximately $315,076 through the filing of 145 fraudulent federal income tax returns.  Raspberry received refund checks from a co-conspirator and deposited them into his bank account.  He would then withdraw the funds and provide them to the co-conspirator, keeping a portion of the proceeds for himself.

The refund checks were generated by filing false federal income tax returns that included Schedules C or C-EZ that falsely claimed that each “taxpayer” operated a business, such as “barber” or “childcare,” as a sole proprietorship.  The returns falsely stated that the “taxpayer” had gross receipts and two or more dependent children, when, in fact, the “taxpayer” was either a victim of identity theft, was misled into providing his or her identifying information, or was a willing participant in the scheme.  The businesses listed on the Schedules C and C-EZ were entirely fictitious.

In a related case this week, Rashida King, 41, of Savannah, Georgia, pleaded guilty on Jan. 14 to conspiracy to defraud the United States with respect to claims.  According to court documents, King deposited at least 33 fraudulently obtained U.S. Treasury checks into her back account.  A sentencing date has not yet been set.

In announcing the sentence, Acting Assistant Attorney General Ciraolo, U.S. Attorney Phillips, Special Agent in Charge Jankowski, Inspector in Charge Kelokates and Assistant Inspector General Phillips commended those who investigated the case.  They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialists Donna Galindo and Julie Dailey.  Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jeffrey B. Bender and Thomas F. Koelbl and former Trial Attorney Jessica Moran of the Tax Division, who prosecuted the case.

ALABAMAN ARRESTED ROLE IN STOLEN IDENTITY THEFT FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, December 15, 2015

Alabama Resident Indicted for Stolen Identity Tax Refund Fraud Scheme

An Alabama resident was arrested today after being indicted on Dec. 9 by a federal grand jury sitting in Montgomery, Alabama, on 15 counts of wire fraud, 15 counts of aggravated identity theft and two counts of passing U.S. Treasury checks with a false endorsement, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck, Jr. of the Middle District of Alabama.

According to the allegations in the indictment, James Vernon Battle, a resident of Montgomery County, used stolen personal identification information to prepare and file false federal income tax returns for tax years 2013 and 2014 for the purpose of obtaining fraudulent tax refunds.  Battle directed the Internal Revenue Service (IRS) to issue the requested refunds by depositing the funds onto prepaid debit cards and by issuing U.S. Treasury checks.

If convicted, Battle faces a statutory maximum sentence of 20 years in prison for each count of wire fraud, a mandatory minimum sentence of two years in prison for aggravated identity theft and a statutory maximum sentence of 10 years in prison for each count of passing a U.S. Treasury check with a false endorsement.  He also faces substantial monetary penalties and restitution.

Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of IRS-Criminal Investigation and the U.S. Secret Service, who investigated the case, and Trial Attorneys Michael C. Boteler and Robert J. Boudreau of the Tax Division and Assistant U. S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting this case.

An indictment merely alleges that crimes have been committed.  The defendant is presumed innocent until proven guilty beyond a reasonable doubt.

TEXAS MAN ARRESTED FOR ROLE IN ID THEFT, INCOME TAX FRAUD SCHEME

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, November 17, 2015

Houston Man Charged in Stolen Identity Tax Refund Fraud Scheme

A Houston, Texas, man was arrested Friday after a federal grand jury sitting in Houston indicted him for three counts of wire fraud, four counts of theft of public money and seven counts of aggravated identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.

According to the allegations in the indictment, during 2015, Denzel Roberts was part of a stolen identity refund fraud (SIRF) scheme that used stolen personal identification information, including names and social security numbers, to file false federal income tax returns for tax year 2014.  Roberts and others used this stolen information to access the Internal Revenue Service’s (IRS) “Get Transcript” web application to obtain tax information of their identity theft victims and filed fraudulent tax returns in those names.  Roberts also opened several bank accounts using a fraudulent passport, directed that the fraudulent tax refunds be deposited into those accounts and withdrew the illicit proceeds.

If convicted, Roberts faces a statutory maximum sentence of 20 years in prison for each count of wire fraud, 10 years in prison for each count of theft of public money and a mandatory sentence of two years in prison for aggravated identity theft.  He also faces substantial monetary penalties and restitution.

Acting Assistant Attorney General Ciraolo and U.S. Attorney Magidson commended special agents of IRS-Criminal Investigation and the FBI’s Houston Cyber Task Force, who investigated the case and Trial Attorneys Michael C. Boteler and Grace E. Albinson of the Tax Division, who are prosecuting this case with assistance from Assistant U.S. Attorney Jimmy Sledge of the Southern District of Texas.

An indictment merely alleges that crimes have been committed.  The defendant is presumed innocent until proven guilty beyond a reasonable doubt.

POSTAL WORKER PLEADS GUILTY FOR ROLE IN STOLEN IDENTITY TAX FRAUD RING

FROM:  U.S. JUSTICE DEPARTMENT 

Thursday, November 12, 2015

Alabama Resident and U.S. Postal Worker Pleads Guilty for Involvement in Stolen Identity Tax Refund Fraud Ring

Stole Identities of Individuals on Her Mail Route for Use in Filing False Tax Returns

An Alabama resident and U.S. Postal Service (USPS) employee pleaded guilty today in the U.S. District Court for the Middle District of Alabama to conspiring to defraud the United States with respect to false claims, aggravated identity theft and embezzling mail, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama announced.

According to court documents, between June 2012 and December 2013, Elizabeth Grant, 42, of Seale, Alabama, conspired with others to obtain fraudulent tax refunds by filing false federal income tax returns using stolen identities.  For a fee, Grant provided co-conspirators with addresses along her mail delivery route to use in filing false tax returns.  Grant then retrieved the fraudulent tax refund checks from the mail and delivered the checks to her co-conspirators.  The scheme resulted in the filing of more than 700 false returns claiming more than $1.5 million in refunds.

Several co-conspirators, including Tracy Mitchell and Keshia Lanier, have already pleaded guilty and were sentenced for their roles in this scheme.  On August 7, Mitchell was sentenced to 159 months in prison.  On September 25, Lanier was sentenced to 180 months in prison.  

Grant faces a statutory maximum sentence of 10 years in prison and a $250,000 fine for the conspiracy count and five years in prison and a $250,000 fine for the count of embezzling mail.  Grant also faces a mandatory minimum sentence of two years in prison for aggravated identity theft, which is in addition to the sentence she receives for the other counts, as well as a potential $125,000 fine.

Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of IRS-Criminal Investigation and the USPS Office of the Inspector General, who investigated the case and Trial Attorneys Michael C. Boteler, Gregory Bailey and Robert J. Boudreau of the Tax Division and Assistant U. S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting this case.

FORMER JAIL EMPLOYEE BECOMES INMATE AFTER STEALING IDENTITIES IN TAX REFUND FRAUD SCHEME

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, August 3, 2015

Former Alabama Jail Employee Sentenced for Stealing Identities as Part of Tax Refund Fraud Scheme

A Troy, Alabama, man was sentenced to prison today in U.S. District Court for the Middle District of Alabama for his involvement in a stolen identity tax refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.

Devon Tucker, 31, a former jailer of the Troy Police Department at the city jail, pleaded guilty earlier this year to one count of conspiracy to defraud the United States and one count of aggravated identity theft.  U.S. District Judge Callie V.S. Granade sentenced Tucker to serve 32 months in prison and three years of supervised release, and ordered him to pay $13,162 in restitution to the Internal Revenue Service (IRS).

According to court documents, from January 2014 to January 2015, Tucker stole the personal identification information of approximately 150 individuals who were processed into the Troy city jail.  Tucker provided those identities to his co-conspirators for the purpose of filing false federal income tax returns claiming fraudulent refunds from the U.S. Treasury.  Tucker was paid in pre-paid debit cards in the names of the identity theft victims for his involvement in the scheme.    

“The Tax Division will vigorously pursue and prosecute government employees who abuse their positions by exploiting their access to personal information to victimize members of the community and steal from the U.S. Treasury,” said Acting Assistant Attorney General Ciraolo.

“It is always a sad day when a law enforcement officer sworn to uphold the law, takes advantage of his position for his own personal gain,” stated U.S. Attorney Beck.  “This district will continue to vigorously prosecute those who steal identities and file fraudulent tax returns, regardless of where they are employed or what position they hold.”

Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Gregory P. Bailey and Michael P. Hatzimichalis of the Tax Division and Assistant U. S. Attorney Jonathan Ross of the Middle District of Alabama, who prosecuted this case.

VIETNAMESE NATIONAL SENT TO PRISON FOR ROLE IN INTERNATIONAL HACKING AND IDENTITY THEFT SCHEME

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, July 14, 2015

Vietnamese National Sentenced to 13 Years in Prison for Operating a Massive International Hacking and Identity Theft Scheme

A Vietnamese national was sentenced to 13 years in prison for hacking into U.S. businesses’ computers, stealing personally identifiably information (PII), and selling to other cybercriminals his fraudulently-obtained access to PII belonging to approximately 200 million U.S. citizens.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Donald Feith of the District of New Hampshire and Director Joseph P. Clancy of the U.S. Secret Service made the announcement.

Hieu Minh Ngo, 25, was sentenced today by U.S. District Court Judge Paul J. Barbadoro of the District of New Hampshire.  Ngo previously pleaded guilty to federal charges brought in the District of New Hampshire and the District of New Jersey, including wire fraud, identity fraud, access device fraud and four counts of computer fraud and abuse.

“From his home in Vietnam, Ngo used Internet marketplaces to offer for sale millions of stolen identities of U.S. citizens to more than a thousand cyber criminals scattered throughout the world,” said Assistant Attorney General Caldwell.  “Criminals buy and sell stolen identity information because they see it as a low-risk, high-reward proposition.  Identifying and prosecuting cybercriminals like Ngo is one of the ways we're working to change that cost-benefit analysis.”

“This case demonstrates that identity theft is a worldwide threat that has the potential to touch every one of us,” said Acting U.S. Attorney Feith.  “I want to acknowledge the excellent work of the United States Secret Service in identifying and capturing Mr. Ngo.  This case proves that the United States Attorney’s Office for the District of New Hampshire will work with law enforcement to investigate and prosecute identity thieves, even if they are halfway around the world.”

“The sentencing of this transnational cybercriminal illustrates another example of Secret Service success in the disruption and dismantling of global criminal networks,” said Director Clancy.  “This investigation and the resulting prosecution and sentencing should serve as a warning to criminals that we will relentlessly investigate, detect, and defend the Nation’s financial infrastructure.  This sentencing joins a long list of successes in combating financial crimes over our 150 year history.”

According to admissions made in connection with his guilty plea, from 2007 to 2013, Ngo operated online marketplaces from his home in Vietnam, including “superget.info” and “findget.me,” to sell packages of stolen PII.  These packages, known as “fullz,” typically included a person’s name, date of birth, social security number, bank account number and bank routing number.  Ngo also admitted to acquiring and offering for sale stolen payment card data, which typically included the victim’s payment card number, expiration date, CVV number, name, address and phone number.  Ngo admitted that he obtained some of the stolen PII by hacking into a New Jersey-based business and stealing customer information.

In addition to selling the “fullz,” Ngo admitted to offering buyers the ability to query online databases for the stolen PII of specific individuals.  Specifically, Ngo admitted that he offered access to PII for 200 million U.S. citizens, and that more than 1,300 customers from around the world conducted more than three million “queries” through the third-party databases maintained on his websites.

Ngo made nearly $2 million from his scheme.  The Internal Revenue Service has confirmed that 13,673 U.S. citizens, whose stolen PII was sold on Ngo’s websites, have been victimized through the filing of $65 million in fraudulent individual income tax returns.

The case was investigated by the U.S. Secret Service’s Manchester Resident Office.  The case is being prosecuted by Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire.

The case out of the District of New Jersey was investigated by the FBI, and is being prosecuted by the U.S. Attorney’s Office of the District of New Jersey.

7 FACED INDICTMENT IN ALLEGED TAX FRAUD SCHEME

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, April 10, 2015

Seven Louisiana Residents Indicted in Tax Fraud Scheme

Seven Tangipahoa Parish, Louisiana, residents were indicted today on charges of conspiracy to defraud the United States, theft of public money, mail fraud, aggravated identity theft and conspiracy to commit money laundering, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana.  According to the indictment, the defendants conspired to file false income tax returns using stolen identities and then launder the resulting fraudulent tax refunds.

The indictment charges Corey Lewis aka Coco, 37, Angela Chaney, 43, Cedrick Mitchell aka Skeet, 39, Craig Lewis, 40, Brad Lewis aka Bird, 32, Thaddeus Richardson, 49, and Martin Jackson Sr., 48, with conspiracy to defraud the United States, conspiracy to commit money laundering, conspiracy to commit mail fraud and conspiracy to commit theft of public money.  In addition, Corey Lewis, Chaney, Richardson and Jackson Sr. were charged with various counts of theft of public money.  Chaney was also charged with six counts of mail fraud and five counts of aggravated identity theft.  Corey Lewis was additionally charged with three counts of aggravated identity theft.

According to the allegations in the indictment, the defendants used individuals’ names and social security numbers in order to prepare false tax returns that claimed large tax refunds.  The refund checks were mailed to addresses in Louisiana, including to post office boxes that were opened by members of the conspiracy.  Once the tax refund checks were received, members of the conspiracy falsely endorsed the checks and cashed them.  Corey Lewis, Chaney and Mitchell deposited fraudulently obtained U.S. Treasury checks into bank accounts under their control.  Richardson and Jackson Sr. deposited checks into their business accounts, then provided some of the proceeds to their co-conspirators and kept the remaining proceeds for themselves.

If convicted, the defendants each face a statutory maximum sentence of 20 years in prison for each mail fraud count and each money laundering conspiracy charge, a statutory maximum sentence of 10 years in prison for each theft of public money count, a statutory maximum sentence of five years in prison for each conspiracy count, and a mandatory minimum sentence of two years in prison for each count of aggravated identity theft.  The defendants also face potential fines, forfeiture and restitution.

Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case, and Trial Attorneys Hayden Brockett and Lauren Castaldi of the Tax Division and Assistant U.S. Attorney Dall Kammer of the Eastern District of Louisiana, who are prosecuting the case.

The charges contained in the indictment are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

TWO SENTENCED FOR ROLES IN STOLEN IDENTITY TAX REFUND FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, April 14, 2015

Two Georgia Men Sentenced to Prison for Stolen Identity Tax Refund Fraud

Two Georgia residents were sentenced today in U.S. District Court in Atlanta for their involvement in a stolen identity tax refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney John A. Horn of the Northern District of Georgia.

Obi Emelogu, 51, of Woodstock, Georgia, was sentenced to serve 45 months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $719,872.  Oloh Samuel, 33, of Acworth, Georgia, was sentenced to serve 18 months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $146,179.  On Oct. 10, 2014, Emelogu pleaded guilty to conspiracy to defraud the United States and aggravated identity theft.  On Dec. 2, 2014, Samuel pleaded guilty to conspiracy to defraud the United States.

“One of the Tax Division’s highest priorities is prosecuting individuals who use stolen identities to file fictitious income tax returns and claim fraudulent refunds,” said Acting Assistant Attorney General Ciraolo.  “This street crime threatens the very fabric of tax administration and often victimizes the most vulnerable members of our communities.  The Tax Division is committed to working with our partners in law enforcement to identify these schemes, dismantle the criminal operations and seek to incarcerate the offenders who view the Federal Treasury as their own personal bank account.”

“These defendants brazenly stole money from the American taxpayers with little regard for whom they affect,” said Acting U.S. Attorney Horn.  “We have committed resources to combat this kind of theft, and will aggressively pursue and prosecute those who believe they can file false tax returns.”

“IRS-Criminal Investigation will remain proactive in the investigation of individuals and groups especially return preparers, who engage in stealing the identities of innocent people,” said Special Agent in Charge Veronica F. Hyman-Pillot of Internal Revenue Service-Criminal Investigation (IRS-CI).  “We will continue to utilize every tool available to investigate those who conspire with each other to victimize members of our community for their own personal gain.”

“These sentences send a clear message that the federal government will aggressively investigate and prosecute the crime of identity theft involving stolen tax refunds,” said J. Russell George, Treasury Inspector General for Tax Administration (TIGTA).  “While criminals may find it easy to steal someone’s identity using their personal information, they need to know that the punishment for committing this crime will be commensurate with the devastating toll identity theft takes on its victims.”

According to court documents other information presented in court, Samuel and Emelogu participated in a scheme using stolen identities to file fraudulent federal income tax returns, including tax returns filed using stolen identities.  The scheme involved businesses located in Georgia, including S & O Accounting Services LLC, which was controlled by Samuel, and Xpress Auto Parts & Towing LLC and O.B. Consulting & Tax Services LLC., which were controlled by Emelogu.  In 2012, Emelogu filed hundreds of false federal income tax returns with the IRS that included fraudulent claims for tax refunds directed to be paid into his business bank accounts and into a bank account controlled by Samuel.  Electronic evidence established that additional false tax returns were also filed from overseas and the refunds were deposited into Samuel’s bank account.   At sentencing, the court found that the intended loss amount attributable to Emelogu was more than $400,000 and that the intended loss amount attributable to Samuel was more than $1 million.

Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Horn commended the special agents of IRS-CI and the TIGTA, who investigated the case, and Assistant U.S. Attorney Thomas J. Krepp of the Northern District of Georgia and Trial Attorney Jason H. Poole of the Tax Division, who prosecuted the case.

FORMER BAIL BONDSMAN ALLEGEDLY STOLE IDENTIES FOR TAX REFUND FRAUD SCHEME

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, June 27, 2014

Former Bail Bondsman Indicted in Stolen Identity Tax Refund Fraud Scheme
Roderick Neal, of Dothan, Alabama, was indicted for stolen identity refund fraud crimes, Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced today following the unsealing of the indictment.  Neal was charged with conspiracy, wire fraud and aggravated identity theft.  

According to the indictment, Neal worked as a bail bondsman in Dothan, and stole personal identifying information.  Neal provided this information to another individual who, in turn, provided the stolen identities to Ivory Bolen, and she used those identities to file fraudulent tax returns with the Internal Revenue Service (IRS) claiming refunds.

An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.  If convicted, Neal faces a statutory maximum sentence of 10 years in prison for conspiracy, a statutory maximum sentence of 20 years in prison for each wire fraud count and a mandatory sentence of two years in prison for the aggravated identity theft counts.

This case was investigated by special agents of the IRS - Criminal Investigation.  Trial Attorneys Charles Edgar and Jason Poole of the Tax Division are prosecuting the case with the assistance of the U.S. Attorney’s Office for the Middle District of Alabama, in particular Assistant U.S. Attorney Todd Brown.

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.

MAN RECEIVES SENTENCE OF 87 MONTHS IN PRISON FOR IDENTITY THEFT AND TAX FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, April 25, 2014

Alabama Man Sentenced for Tax Fraud and Identity Theft

Nakia Jackson, of Montgomery, Alabama, was sentenced to serve 87 months in prison today for conspiring to defraud the United States and one count of aggravated identity theft for his role in a stolen identity refund fraud scheme, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division, U.S. Attorney George L. Beck Jr. for the Middle District of Alabama and the Internal Revenue Service (IRS).

According to court documents, between January 2009 and March 2011, Jackson obtained stolen identities from an Alabama state employee and used those identities to file false tax returns.  Jackson recruited a bank employee, LaQuanta Clayton, to assist him in depositing the false income tax refunds into various bank accounts.  He obtained permission from several individuals to use their bank accounts to receive false refunds and when a false refund was deposited, Jackson would direct the individuals to withdraw the money and give the money to him.  In total, Jackson filed over 100 false tax returns and requested over $400,000 in refunds.

In addition, Jackson was ordered to serve three years of supervised release and pay $212,856 in restitution.

IRS-Criminal Investigation agents investigated this case and Trial Attorneys Charles M. Edgar Jr. and Michael Boteler for the Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.

IDENTITY THEFT RING LEADER SENTENCED TO 12 YEARS IN PRISON

FROM:  U.S. JUSTICE DEPARTMENT
Friday, March 7, 2014
Leader of Identity Theft Ring Sentenced for Stealing More Than 600 Identities and Causing More Than $1 Million in Losses

The leader of an identity theft ring that stole more than 600 identities from U.S. government employees and others was sentenced today to serve 12 years in prison, followed by three years of supervised release.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Acting United States Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Kathy A. Michalko of the United States Secret Service’s Washington Field Office and Chief Edwin C. Roessler Jr. of the Fairfax County Police Department made the announcement.

Jenaro Blalock, 31, of Clinton, Md., pleaded guilty on Oct. 29, 2013, to access device fraud and aggravated identity theft and was sentenced by United States District Judge Claude M. Hilton.   Blalock was also ordered to pay full restitution to victims.

According to court documents, between June 2011 and July 2013, Blalock and co-leader Christopher Bush recruited women with access to identity information through their employers to steal more than 600 identities, primarily belonging to employees of the U.S. Department of State, the U.S. Department of Defense and the U.S. Agency for International Development.   Blalock provided blank driver’s licenses so that Bush could make fraudulent driver’s licenses bearing the victims’ real names, addresses and dates of birth.   Blalock also made fraudulent credit cards bearing victims’ names.   Members of the identity theft ring, including Blalock, used those fraudulent driver’s licenses and victims’ social security numbers to open instant credit lines at retailers and obtain rental cars, which were frequently sold on the black market with altered vehicle identification numbers.   According to information provided at sentencing, the identity theft ring caused victim losses of between $1 million and $2.5 million.

On Jan. 17, 2014, Bush was sentenced to serve 10 years in prison for his role in the scheme.

This case was investigated by the United States Secret Service and the Fairfax County Police Department, with assistance from the City of Fairfax Police Department, Prince George’s County Washington Area Vehicle Enforcement, Prince George’s County Financial Crimes Section, the Metropolitan Washington Airport Authority, the Delaware State Police, the Maryland State Police, the D.C. Metropolitan Police Department, the U.S. Postal Inspection Service, the Office of the Inspector General of the U.S. Department of Agriculture and the Office of the Inspector General of the U.S. Department of State .

The case was prosecuted by Trial Attorney Peter Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Lindsay Kelly of the Eastern District of Virginia.

ARMENIAN POWER GANG ASSOCIATE CONVICTED FOR CONSPIRACY

FROM:  U.S. JUSTICE DEPARTMENT 
Wednesday, February 12, 2014
Armenian Power Gang Associate Convicted for His Role in Racketeering Conspiracy

Andranik Aloyan, an associate of the Armenian Power gang, has been convicted at trial for his role in a racketeering conspiracy that included stealing personal and financial information of elderly bank customers who held accounts that were valued at more than $25 million.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Andre Birotte Jr. of the Central District of California and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement.

Aloyan, 40, of Los Angeles, was convicted by a federal jury on Feb.11, 2014, of racketeering conspiracy, attempted bank fraud, access device fraud, four counts of aggravated identity theft, and possession of a firearm by a convicted felon.  According to evidence at trial, Aloyan possessed personal and financial information of more than 75 mostly elderly customers of banks throughout the country.  The combined value of the accounts for which Aloyan possessed account information exceeded $25 million.

Aloyan was among 90 individuals charged in two indictments, including a 140-count indictment in July 2011 charging 70 defendants with a variety of criminal activities associated with the Armenian Power gang.  The indictment accused 29 defendants, including Aloyan, of participating in the Armenian Power racketeering conspiracy that involved a host of illegal activities such as sophisticated fraudulent schemes of bank fraud, identity theft, debit-card skimming, manufacturing counterfeit checks and laundering criminal proceeds.  In addition, defendants in the case were allegedly involved in a variety of violent crimes, such as kidnapping, extortion and firearms offenses, along with other crimes including drug trafficking and illegal gambling.

According to court documents, the Armenian Power street gang formed in the East Hollywood district of Los Angeles in the 1980s.  The gang’s membership consisted primarily of individuals of Armenian descent, as well as of other countries within the former Soviet bloc.  Armenian Power has been designated under California state law as a criminal street gang and is believed to have more than 250 documented members, as well as hundreds of associates. According to court documents, Armenian Power members and associates regularly carry out violent criminal acts, including murders, attempted murders, kidnappings, robberies, extortions and witness intimidation to enrich its members and associates and preserve and enhance the power of the criminal enterprise.

Aloyan was convicted after a five-day jury trial before U.S. District Judge Philip S. Gutierrez in the Central District of California.  He is scheduled to be sentenced on June 2, 2014.

Five defendants remain pending trial in March 2014.  Seventy-seven defendants have previously been convicted or pleaded guilty to the indictments.

The case is being investigated by the Eurasian Organized Crime Task Force, which is comprised of the FBI, the U.S. Secret Service, the Los Angeles Police Department, the Glendale Police Department, the Burbank Police Department, the Internal Revenue Service and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

The case is being prosecuted by Assistant U.S. Attorneys Martin Estrada, Elizabeth Yang and Stephen Wolfe of the Central District of California and Trial Attorney Andrew Creighton of the Criminal Division’s Organized Crime and Gang Section.

FTC TESTIFIES ON IDENTITY THEFT

FROM:  FEDERAL TRADE COMMISSION 

Testifying Before the House Energy and Commerce Committee, Subcommittee on Commerce, Manufacturing and Trade, FTC Reiterates its Support for Data Security Legislation

The Federal Trade Commission testified before Congress for the third time in as many days today, emphasizing the agency’s ongoing efforts to promote data security, and reiterating its unanimous support for enactment of a strong federal data security and breach notification law.

Testifying on behalf of the Commission before the House Energy and Commerce Committee’s Subcommittee on Commerce, Manufacturing and Trade, FTC Chairwoman Edith Ramirez outlined the agency’s efforts to promote data security through civil law enforcement, education, and policy initiatives. The testimony notes that businesses are collecting more personal information about consumers than ever before, and that rising reports of data breaches show that these systems are susceptible to being compromised.

“Never has the need for legislation been greater.  With reports of data breaches on the rise, and with a significant number of Americans suffering from identity theft, Congress needs to act,” the testimony states.

The testimony points out that, according to estimates by the Bureau of Justice Statistics, 16.6 million persons – or 7 percent of all U.S. residents ages 16 and older – were victims of identity theft in 2012.

The testimony explains that, to promote data security, the FTC enforces several statutes and rules that impose obligations upon businesses that collect and maintain consumer data.  These include the proscription against unfair or deceptive acts or practices in Section 5 of the FTC Act; the Gramm-Leach-Bliley Act; the Fair Credit Reporting Act; and the Children’s Online Privacy Protection Act.

The testimony stresses the Commission’s bipartisan support for data security legislation that would enhance existing laws and strengthen the agency’s existing authority.  The Commission supports legislation, for example, that would give the FTC the ability to seek civil penalties to help ensure FTC enforcement actions have an appropriate deterrent effect.  Under current laws, the FTC only has the authority to seek civil penalties for data security violations involving companies that fail to protect children’s information provided online in violation of the COPPA Rule or credit report information in violation of the FCRA.  The Commission also recommends data security legislation that would provide the agency with jurisdiction over non-profits, which have been the source of a substantial number of breaches

The Commission also recommends that Congress enact a federal law that would require companies, in appropriate circumstances, to notify consumers when there is a security breach, the testimony states.  This would help consumers mitigate likely harm from the misuse of their data.  Although most states have breach notification laws, a strong and consistent, national requirement would ensure that all consumers are protected.  

In addition, the Commission promotes better data security practices through consumer education and business guidance, the testimony notes.  On the consumer education front, the Commission recently posted information for consumers who may have been affected by the recent Target and other breaches, providing steps they should take to protect themselves.  It also widely disseminates a business guide on data security, along with an online tutorial, that are designed to provide diverse businesses – and especially small businesses – with practical, concrete advice as they develop data security programs and plans for their companies.

The Commission vote approving the testimony and its inclusion in the formal record was 4-0.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

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.

MAN PLEADS GUILTY IN CASE INVOLVING OVER 100 FALSE TAX RETURNS

FROM:  JUSTICE DEPARTMENT 
Monday, January 13, 2014
Alabama Man Pleads Guilty to Tax Fraud and Identity Theft

Nakia Jackson pleaded guilty to one count of conspiracy to defraud the United States and one count of aggravated identity theft for his role in a stolen identity refund fraud scheme, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division, U.S. Attorney George L. Beck Jr. for the Middle District of Alabama and the Internal Revenue Service (IRS).

According to court documents, between January 2009 and March 2011, Jackson obtained stolen identities from an Alabama state employee and used those identities to file false tax returns.  Jackson recruited a bank employee, LaQuanta Clayton, to assist him in having the false income tax refunds deposited into various bank accounts.  He obtained permission from several individuals to use their bank accounts to receive false refunds and when a false refund was deposited, Jackson would direct the individuals to withdraw the money and give the money to him.  In total, Jackson filed over 100 false tax returns and requested over $400,000 in refunds.

Sentencing has been scheduled for April 23, 2014.  Jackson faces a statutory minimum sentence of two years in prison and a statutory maximum sentence of 12 years in prison, three years of supervised release, restitution and a maximum fine of $250,000, or twice the loss caused by the offense.  LaQuanta Clayton has already pleaded guilty and is awaiting sentencing.

IRS-Criminal Investigation agents investigated this case and Tax Division Trial Attorneys Charles M. Edgar Jr. and Michael Boteler and Assistant U.S. Attorney Todd Brown are prosecuting the case.

ALABAMA MAN USED COMPUTER, THREE CELL PHONES IN IDENTITY THEFT AND TAX REFUND FRAUD SCHEME

FROM:  U.S. JUSTICE DEPARTMENT 
Thursday, November 14, 2013
Alabama Man Sentenced to Federal Prison for Role in Identity Theft and Tax Refund Scheme

Kevin Jackson of Montgomery, Ala., was sentenced to serve 102 months in federal prison and three years of supervised release, along with an order to pay $150,840.49 in restitution, for his role in a stolen identity refund fraud scheme, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney for the Middle District of Alabama George L. Beck Jr.  Jackson had previously pled guilty to access device fraud and to aggravated identity theft.

According to court documents, Jackson possessed a storage locker in which law enforcement authorities found a computer, three cellular telephones, at least 500 names and Social Security numbers of identity theft victims and at least 70 prepaid debit cards, all tied to a scheme to obtain fraudulent federal tax refunds by causing federal tax returns to be filed in the names of stolen identities.

The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation and the U.S. Secret Service, along with assistance from the Montgomery Police Department.  Trial Attorneys Justin Gelfand and Jason Poole of the department’s Tax Division prosecuted the case.