AG HOLDER PROMISES AGGRESSIVE ENFORCEMENT AGAINST STOLEN IDENTITY REFUND FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, April 7, 2014

As Tax Filing Deadline Nears, Attorney General Holder Calls Stolen Identity Refund Fraud ‘Rising Threat,’ Vows Aggressive Enforcement Against Scams
Justice Department Charged More Than 880 Defendants Involved in Stolen Identity Refund Fraud in the Past Year

As the April 15 tax filing deadline approaches, Attorney General Eric Holder warned U.S. tax filers to beware a “rising threat” of scammers seeking fraudulent refunds based on stolen identities, and vowed aggressive enforcement against the practice.  Speaking in a recorded video message released on the Justice Department’s website, Attorney General Holder explained that a growing pool of criminals are engaged in the activity, including gangs and drug sellers seeking quick access to cash.

The Justice Department’s Tax Division, in conjunction with the Internal Revenue Service and U.S. Attorneys’ Offices nationwide, have prioritized the investigation and prosecution of individuals who engage in stolen identity refund fraud.  In the last year alone, the Department charged more than 880 defendants involved in stolen identity refund fraud, and the IRS reports that it resolved or closed approximately 963,000 cases involving identity theft victims.

“This is an increasingly urgent problem,” said Attorney General Holder.  “Its impact can be devastating to families that are counting on legitimate tax refunds that are diverted by identity theft.  And especially in recent years, the Justice Department has seen the scale, scope, and execution of these fraud schemes grow significantly.”

The Attorney General urged Americans to protect themselves by reporting suspicious activity and learning more at the IRS website, the Justice Department’s Tax Division website, and STOPFRAUD.GOV.  Noting that anyone can be a target of these scams, Attorney General Holder shared his own recent experience with tax refund fraud after two individuals in Georgia attempted to obtain a fraudulent refund using his personal information.

            The complete text of the Attorney General’s video message is below:

“With the time to file taxes just around the corner, we at the Justice Department want to warn you about a rising threat facing law-abiding taxpayers.

“Over the last several years, stolen identity refund fraud has affected hundreds of thousands of Americans, victimizing honest citizens and draining billions of taxpayer dollars from the U.S. Treasury.  In fact, the IRS reported that last year they resolved and closed approximately 963,000 cases involving identity theft victims.  Criminals who perpetrate these schemes use stolen personal identifying information – such as Social Security numbers – to file false tax returns with the IRS in order to steal fraudulent tax refunds.

“These scams are no longer just about white-collar criminals.  They are carried out by a variety of actors – from greedy tax return preparers to identity brokers who profit from the sale of personal information – to gangs and drug rings looking for easy access to cash.  And these criminal enterprises disproportionately target the most vulnerable members of society – including low-income families, the elderly, Medicaid recipients, and those who have lost loved ones – including children.

“This is an increasingly urgent problem.  Its impact can be devastating to families that are counting on legitimate tax refunds that are diverted by identity theft.  And especially in recent years, the Justice Department has seen the scale, scope, and execution of these fraud schemes grow significantly.

“Fortunately, our knowledge of these crimes – and our ability to stop them – has grown as well.  Last year alone, the Justice Department charged more than 880 defendants for their involvement in stolen identity refund fraud.  Over the last few years – in some instances – those convicted of these crimes have faced sentences totaling upwards of ten years in prison.  These sentences match the seriousness of these crimes.  And they demonstrate our steadfast commitment to investigating and prosecuting tax refund fraud that involves identity theft.

“Particularly as we approach April 15th – as millions of Americans prepare and file this year’s tax returns – the Justice Department and its partners are stepping up our enforcement efforts.  And we’re taking aggressive action to stop stolen identity refund fraud in its tracks whenever and wherever it occurs.

“The Justice Department will use every tool at its disposal to go after these scammers.  And we’ll keep working with the IRS, the FBI, the Secret Service, the Postal Inspection Service, and other federal law enforcement agencies – as well as state and local law authorities – to combat these crimes.  But we need members of the public to do their part by staying vigilant.  After all, identity thieves can target anyone – something I saw firsthand last year, when two people attempted to get a fraudulent tax refund using my personal information.

“So I urge all of you to help my colleagues and I raise awareness about this growing threat.  Protect yourself by reporting suspicious activity and filing your taxes as early as possible.  And keep yourself from becoming a target by learning more about fraud and identity theft on the IRS website – or by visiting STOPFRAUD.GOV.”

MAN INDICTED IN STOLEN IDENTITY TAX REFUND SCHEME

FROM: U.S. DEPARTMENT OF JSUTICE
Wednesday, June 12, 2013

Alabama Man Indicted for Multi-state Stolen Identity Refund Fraud Scheme

Christopher Cordelle Davis, of Montgomery County, Ala., was indicted by a federal grand jury in the Middle District of Alabama for his role in a scheme to file fraudulent tax returns using stolen identities, the Justice Department and Internal Revenue Service (IRS) announced today following Davis’s arrest. He was charged with conspiracy to defraud the United States, five counts of wire fraud, and five counts of aggravated identity theft.


According to the indictment, Davis provided stolen identities to Kenneth Jerome Blackmon Jr. Davis and Blackmon then filed fraudulent tax returns using the stolen identities. The refunds would be directed to debit cards. Davis would recruit individuals to obtain the debit cards and to go on trips during which the cards would be used to cash out the refund money at various locations in different states, including Georgia and South Carolina. The indictment also alleges that in September 2011, Davis possessed over 600 stolen identities, some taken from a medical facility in Alabama and over 200 prepaid debit cards in Gwinnett County, Ga. Blackmon was previously convicted and sentenced to 51 months in prison for his role in the conspiracy.

An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty. If convicted, Davis faces a maximum potential sentence of five years in prison for the conspiracy charge, up to 20 years in prison for each wire fraud charge and a mandatory two-year sentence for the aggravated identity theft counts. He will also be subject to fines and mandatory restitution and forfeiture if convicted.

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

ALABAMA WOMAN PLEADS GUILTY TO ROLE IN STOLEN IDENTITY REFUND FRAUD SCHEME

FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, May 29, 2013

Alabama Resident Pleads Guilty in Stolen Identity Refund Fraud Scheme

Today, Bridgette Rivers, a resident of Montgomery, Ala., pleaded guilty to her involvement in a conspiracy to use stolen identities to file fraudulent tax returns, the Justice Department and the Internal Revenue Service (IRS) announced today.

According to the court documents, Rivers provided identity information to her co-conspirators, Barbara Murry, Veronica Temple and Yolanda Moses. Those co-conspirators used these stolen identities and others to file false tax returns that fraudulently requested tax refunds from the IRS. Rivers also recruited another individual to provide her bank account information to the conspiracy. The fraudulently obtained tax refunds went into that individual’s bank account and the individual would then withdraw the money to give to Rivers.

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

MAN SENTENCED TO PRISON FOR TRYING TO USE STOLEN SS NUMBERS TO OBTAIN TAX REFUNDS

FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, April 24, 2013

Alabama Man Sentenced to Federal Prison for Stolen Identity Refund Fraud

Kenneth Jerome Blackmon Jr., a resident of Montgomery, Ala., was sentenced today to 51 months in prison, the Justice Department and the Internal Revenue Service (IRS) announced.

In January 2013, Blackmon pleaded guilty to aggravated identity theft and access device fraud. According to court documents, Blackmon was involved in a scheme to use stolen identities to file false federal income tax returns with the IRS. He admitted to acquiring names and Social Security numbers, to using that identity information on false tax returns, and to directing fraudulent tax refunds onto debit cards. Blackmon also admitted to possessing at least 15 Social Security numbers for the purpose of obtaining fraudulent tax refunds from the IRS.

In addition to prison time, Blackmon was ordered to pay $197,839 in restitution to the IRS and to serve three years of supervised release following his release from federal custody.

Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally and U.S. Attorney for the Middle District of Alabama George L. Beck Jr., commended the efforts of IRS – Criminal Investigation special agents in investigating the case, Tax Division Trial Attorneys Justin Gelfand and Jason Poole in prosecuting the case, and the Alabama Department of Pardons and Paroles and the Gwinnett County, Ala., Sheriff’s Department in Georgia in assisting federal authorities with the investigation.

MAN GETS 48 MONTHS FOR STOLEN IDENTITY REFUND FRAUD

FROM: U.S. DEPARTMENT OF JUSTICE

Monday, November 19, 2012
New Mexico Man Sentenced to Prison for Stolen Identity Refund Fraud
Douglas Kuester, 43, a tax preparer from Silver City, N.M., was sentenced today to 48 months in prison for filing false claims and aggravated identity theft, the Justice Department and the Internal Revenue Service (IRS) announced today. Kuester was also ordered to pay $911,000 in restitution and will be on supervised release for three years after completing his prison sentence.

Kuester had pleaded guilty to the charges in May. He was originally indicted by a federal grand jury on Jan. 18, 2012, and has been in custody since his arrest on January 24.

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. Kuester also admitted to using an anonymizer to help conceal his filing of the false returns.

Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, and U.S. Attorney Kenneth J. Gonzales commended special agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Jason H. Poole and Gregory P. Bailey, who prosecuted the case with assistance from the New Mexico U.S. Attorney’s Office.