Source- http://omaha.fbi.gov/dojpressrel/pressrel11/om012111.htm
DES MOINES, IA—Phyllis Stevens and Marla Stevens were sentenced today for multiple felony offenses, announced United States Attorney Nicholas A. Klinefeldt. Phyllis Stevens was sentenced to a term of 72 months in prison, based upon her earlier guilty pleas to the crimes of conspiracy to commit money laundering, conspiracy to file false income tax returns, wire fraud, computer fraud, and filing a false income tax return. Her term of imprisonment will be followed by three years of supervised release. The judge also imposed a mandatory $600 special assessment payable to the Crime Victim Fund.
Marla Stevens was sentenced to a term of 40 months in prison, based upon her earlier guilty pleas to the crimes of conspiracy to commit money laundering and conspiracy to file false income tax returns. Her term of imprisonment will be followed by three years of supervised release. The judge also imposed a mandatory $200 special assessment payable to the Crime Victim Fund.
The sentences were imposed by Senior District Judge Ronald E. Longstaff, who also ordered restitution to be paid by both defendants in the amount of $6,757,069.62, payable to Aviva USA, the victim of the embezzlement. The defendants also were ordered to forfeit real estate located in Iowa and Indiana, and the balance of a bank account, because these assets were obtained from the crimes alleged against them.
In a written plea agreement, Phyllis Stevens had admitted to a long-time pattern of embezzlement by making false and fraudulent entries into the computer system of her employer. She admitted to using large sums of this money to purchase real estate and for making large payments to American Express. She further admitted to filing false income tax returns which failed to report the embezzled income in her own name, and which sometimes falsely reported the income in the names of other individuals as part of an effort to conceal the fraud. Marla Stevens admitted that she knew or had reason to know that Phyllis Stevens was receiving income from some form of unlawful activity, that she participated in financial transactions with the proceeds of Phyllis Steven's unlawful activity, and that she participated in the filing of false income tax returns.
"These sentences show that so-called 'white collar' offenses are serious crimes, and that committing these crimes can bring severe consequences," stated United States Attorney Nicholas A. Klinefeldt. "I would like to commend the FBI and IRS for their fine work in investigating this case and AUSA Andrew Kahl for his good work in prosecuting it. While this was a complex case, at the end of the day, it came down to one thing: greed. Phyllis and Marla Stevens lived a lavish lifestyle on stolen money, and now they are going to pay the price. Let this case be a lesson to others who might think about stealing from their employer. We will catch you, we will prosecute you, and you will pay the price."
Weysan Dun, Special Agent in Charge of the Omaha Division of the FBI, which covers the states of Iowa and Nebraska stated, "White collar crime is not a victimless crime. Fraud or embezzlement is essentially a robbery committed by paper rather than brute force. It results in financial loss to someone and it ultimately undermines confidence in our nation's economic infrastructure so everyone ends up paying for it in some way. The FBI is committed to investigating white collar crimes and we encourage anyone who has information about fraud or embezzlement to report it to the FBI."
"The role of IRS-Criminal Investigation becomes even more important in embezzlement cases due to the complex financial transactions that can take time to unravel," said Toni Weirauch, Special Agent in Charge of IRS Criminal Investigation. "The Federal Tax laws are normally violated in these cases. As we often see, the victims are not only the taxpayers, but also the entities who suffer financial harm."
Monday, January 24, 2011
Phyllis Stevens and Marla Stevens Sentenced for Multi-Million Dollar Embezzlement Scheme and Tax Fraud
Saturday, January 22, 2011
Janika Fernae Bates Charged With Conspiring to use Stolen Identities of Student Loan Borrowers on False Tax Returns
Source- http://www.justice.gov/tax/txdv11087.htm
WASHINGTON – Janika Fernae Bates of Millbrook, Ala., was indicted by a federal grand jury on charges of identity theft, wire fraud and conspiracy to make false claims for tax refunds, the Justice Department and Internal Revenue Service (IRS) announced today. Bates was previously employed at Electronic Data Systems in Montgomery, Ala.
According to the indictment filed against her, Bates obtained the names and Social Security numbers of student loan borrowers from the databases at her employer and conspired to use the stolen identifying information to steal money from the government. The indictment further alleges that Bates and a co-conspirator fraudulently obtained refund anticipation loans from the bank HSBC predicated on the fraudulently filed tax returns.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Janika Fernae Bates faces a minimum of two years in prison, a maximum of 354 years in prison and a maximum fine of $6,250,000.
Friday, January 21, 2011
Former Webster Bank Employee Susan A. Curtis, Admits Role in $6 Million Embezzlement Scheme
Source- http://newhaven.fbi.gov/dojpressrel/pressrel11/nh012011.htm
David B. Fein, United States Attorney for the District of Connecticut, announced that SUSAN A. CURTIS, 49, of Naugatuck, pled guilty today before United States District Judge Janet C. Hall in Bridgeport to bank fraud and tax charges stemming from CURTIS’ involvement in a scheme to defraud Webster Bank and Bank of America of more than $6 million.
According to court documents and statements made in court, CURTIS was employed in the Property Services Division of Webster Bank with responsibilities that included negotiating and managing bank property leases where Webster Bank was a landlord or tenant. CURTIS and Kevin W. Caffrey, who were married from May 2000 to May 2006, established a company called New House, LLC. Later, CURTIS and a co-defendant established a company called Equity Realty, LLC. CURTIS falsely represented to Webster Bank’s Vendor Management Department that both companies were brokers, an exempted category for due diligence and annual review.
As part of a scheme to defraud Webster Bank, CURTIS submitted paperwork to Webster Bank’s Accounts Payable Department in which she falsely represented that New House and Equity Realty were due fees in approximately 108 real estate related transactions. As a result, Webster Bank made payments of approximately $5.04 million to New House and Equity Realty.
In addition, CURTIS caused persons doing business with Webster Bank to send approximately $723,620 in payments for tenant improvements and reimbursements, which were owed to Webster Bank, directly to CURTIS. Certain of these checks were altered to make them payable to Webster Bank c/o Equity Realty, and then were deposited into an Equity Realty account at another bank.
CURTIS also caused a representative of Webster Bank to send another $450,000 payment, which was owed to Webster Bank, directly to CURTIS. The check was made payable to Equity Realty c/o Webster Bank, and was subsequently deposited into the Equity Realty bank account.
In pleading guilty, CURTIS also admitted that she fraudulently applied for, and received, a $649,000 mortgage loan from Bank of America for a property in East Hampton, Connecticut. CURTIS submitted false loan applications on which she misrepresented and concealed the real source of her income and extent of her liabilities.
Finally, CURTIS admitted that she filed false federal tax returns for the 2006 through 2009 tax years, during which she failed to report more than $3.79 million in embezzled funds.
On November 10, 2010, a federal grand jury in Hartford returned a second superseding indictment charging CURTIS and a co-defendant with various offenses stemming from this embezzlement scheme. Today, CURTIS plead to six of the eight counts in which she is charged, namely two counts of bank fraud and four counts of filing false tax returns. She has plead not guilty to one count of conspiracy to money launder and one count of bank fraud, and a trial on the remaining counts in the indictment is scheduled for April 18, 2011.
Each count of bank fraud carries a maximum term of imprisonment of 30 years, and each count of filing a false tax return carries a maximum term of imprisonment of three years. CURTIS also faces a maximum fine of more than $12 million. She also will be ordered to pay restitution to the victim banks, and back taxes, plus penalties and interest, to the Internal Revenue Service.
In addition, the government is seeking the forfeiture of an interest up to an amount of $1,105,790.79 in real property in East Hampton, several automobiles, two Harley Davidson motorcycles, two boats and boat trailers, approximately $300,000 in artwork, approximately $100,000 in jewelry, and a Steinway piano valued at more than $77,000. The government also is seeking a money judgment in the amount of $7,002,589.85.
U.S. Attorney Fein stressed that, as to the remaining counts against both CURTIS and her co-defendant, an indictment is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial at which it will be the government’s burden to prove guilt beyond a reasonable doubt.
On October 14, 2010, Kevin Caffrey plead guilty to one count of bank fraud and one count of filing a false tax return. He awaits sentencing.
Thursday, January 20, 2011
Inmate Dimorio McDowell Who Ran a Quarter-Million-Dollar Identity Theft Ring from Inside Federal Prison Receives an Additional 14.5 Years in Prison
Source- http://cleveland.fbi.gov/dojpressrel/pressrel11/cl011811.htm
The man who led an identity-theft ring that ran up a quarter-million dollars worth of charges from inside a federal prison was sentenced to more than 14 years in prison, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today.
“The defendant thought he found a way to occupy his time in prison,” Dettelbach said. “With this prosecution and this sentence, he’ll have lots more time to learn to follow the rules.”
Dimorio McDowell, age 34, of Atlanta, Georgia, previously pled guilty to aggravated identity theft and conspiracy to commit wire fraud and bank fraud. McDowell was an inmate at Fort Dix Federal Correctional Institution at the time of the scheme, which took place between August 2009 and April 2010. U.S. District Judge Donald Nugent ordered McDowell’s 174-month sentence on this case begin in 2014, when he completes the current sentence that resulted in his incarceration at Fort Dix.
McDowell was the ringleader who obtained personal information on people who had credit card accounts at various retailers, including Best Buy, Home Depot, J.C. Penney, Lowe’s, Macy’s, Nordstrom’s, Saks Fifth Avenue, Sears and Staples, according to court documents.
McDowell contacted the retailers and impersonated the true account holders, store employees, or corporate fraud investigators. He used information about the account holders, such as name, address, or Social Security number during those calls to obtain additional information about them and adding co-conspirators names as authorized users of the accounts, thus taking over the accounts, according to court documents.
After taking over the accounts, adding additional users to the accounts and opening new accounts, McDowell communicated with his co-conspirators, all of whom lived in the Cleveland area.
McDowell continued to run his scheme from prison even after he was charged and after he pled guilty. He also posed as a deputy U.S. Marshal over the telephone and attempted to have prisoners moved, according to information presented during the sentencing hearing.
Overall, the ring purchased more than $254,000 worth of merchandise as part of their scheme, according to court documents.
Also charged in the case are: Andre Reese, 37; Jeffery McClain, 39; Kevin McBride, 34; Michael Sailes, 51; Edwin Peavy, 52; Daniel Ashford, 37; James L. Wiggins, 47, and Jay Williams, 27, all of Cleveland, Ohio. All have entered guilty plea to charges against them.
This prosecution is the result of cooperation from a number of law enforcement agencies who identified the defendants, gathered the evidence and prepared the case for prosecution. The investigative team included the Federal Bureau of Investigation’s Cleveland Division and Trenton Resident Agency, the U.S. Bureau of Prisons, the Postal Inspection Service, Bath Township Police Department, Stow Police Department, Mentor Police Department and other state and local law enforcement agencies. The case was prosecuted by Assistant U.S. Attorney Matthew B. Kall.
“This case is a stark reminder about the need to protect yourself from identity theft and fraud,” Dettelbach said. “I want to thank the FBI, the Bureau of Prisons and all our partners who made prosecuting this case possible.”
Wednesday, January 19, 2011
Provident Capital Indemnity, Its President Minor Vargas Calvo and Auditor Jorge Castillo Charged in $670 Million Fraud Scheme
Source- http://www.justice.gov/opa/pr/2011/January/11-crm-075.html
RICHMOND, Va. – The president and the auditor of a Costa Rican company selling reinsurance bonds to life settlement companies were arrested and charged, along with the company itself, in a seven-count indictment unsealed today for their alleged role in a $670 million fraud scheme involving victims throughout the United States and abroad.
The charges were announced today by U.S. Attorney for the Eastern District of Virginia Neil H. MacBride and Assistant Attorney General Lanny A. Breuer of the Criminal Division.
An indictment unsealed today in U.S. District Court for the Eastern District of Virginia charges Costa Rica-based Provident Capital Indemnity Ltd. (PCI), Minor Vargas Calvo, 59, and Jorge Castillo, 55, each with one count of conspiracy to commit mail and wire fraud, three counts of mail fraud and three counts of wire fraud. The indictment also seeks forfeiture of more than $40 million from all three defendants. Vargas was arrested on Jan. 18, 2011, at the John F. Kennedy International Airport, and Castillo was arrested earlier today in New Jersey.
“PCI is accused of lying to investors across the globe to sell more than half a billion dollars worth of ‘guaranteed’ bonds which turned out to be worthless,” said U.S. Attorney MacBride. “This case is another example of how the members of the Virginia Financial and Securities Fraud Task Force are working to detect, deter and punish financial fraudsters who target investors throughout Virginia, the nation and the world.”
“These defendants allegedly sold $670 million in bonds by making numerous false representations, which were disseminated to thousands of investors,” said Assistant Attorney General Breuer. “They stand accused of defrauding victims at home and abroad. As these charges show, the Justice Department is committed to rooting out investment fraud wherever we find it.”
According to the indictment, Vargas, a citizen and resident of Costa Rica, is the president and majority owner of PCI, an insurance and reinsurance company registered in the Commonwealth of Dominica and doing business in Costa Rica. Castillo, a resident of New Jersey, is the purported independent auditor for PCI. If convicted, Vargas and Castillo face up to 20 years in prison on each count.
The defendants allegedly engaged in a scheme to defraud clients and investors by making misrepresentations about PCI’s reinsurers, PCI’s financial statements and PCI’s Dun and Bradstreet rating, in connection with PCI’s marketing and sale of “financial guarantee bonds” to companies that sold life settlements or securities backed by life settlements to investors. PCI’s bonds were allegedly marketed as a way to eliminate one of the primary risks of investing in life settlements, namely the possibility that the individual insured by the underlying life insurance policy will live beyond his or her life expectancy.
This continuing investigation is being conducted by the U.S. Postal Inspection Service, Internal Revenue Service and FBI, with assistance from the Virginia State Corporation Commission, the Texas State Securities Board, and the New Jersey Bureau of Securities. This case is being prosecuted by Assistant U.S. Attorneys Michael S. Dry and Jessica A. Brumberg of the Eastern District of Virginia and Trial Attorney Albert B. Stieglitz Jr. of the Criminal Division’s Fraud Section.
In a parallel investigation, the U.S. Securities and Exchange Commission announced today its filing of a parallel emergency enforcement action against PCI, Vargas and Castillo.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
The investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia. The task force is an investigative arm of the President’s Financial Fraud Enforcement Task Force, an interagency national task force.
President Obama established the Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Robert Dewain Venson Sentenced to 10 Years in Prison for Mortgage Fraud Scheme
Source- http://baltimore.fbi.gov/dojpressrel/pressrel11/ba011911b.htm
GREENBELT, MD—U.S. District Judge Alexander Williams, Jr. sentenced Robert Dewain Venson, age 38, of Fort Washington, Maryland, today to 10 years in prison followed by three years of supervised release for mail and wire fraud, money laundering, and failing to file tax returns in connection with a three-year mortgage fraud scheme involving at least a dozen residential properties. Judge Williams also ordered Venson to pay restitution of $2,060,021.76 and to forfeit $892,368, his proceeds from the scheme.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation - Baltimore Field Office; Assistant Director in Charge James W. McJunkin of the Federal Bureau of Investigation - Washington Field Office; Special Agent in Charge Rebecca Sparkman of the Internal Revenue Service - Criminal Investigation, Washington D.C. Field Office; and Acting Postal Inspector in Charge Keith A. Fixel of the U.S. Postal Inspection Service - Washington Division.
“This lengthy sentence sends a powerful message that people who commit mortgage fraud will be held accountable,” said U.S. Attorney Rod J. Rosenstein.
"IRS-Criminal Investigation special agents work diligently to identify and bring to prosecution those who fail to meet their tax obligations,” stated Rebecca Sparkman, Internal Revenue Service-Criminal Investigation Special Agent in Charge, Washington D.C. Field Office. "We work together with other federal law enforcement agencies to follow the money to financially disrupt criminal activities such as Mr. Venson’s money laundering scheme."
According to evidence presented at his two-week trial, from 2004 to 2007 Venson negotiated the purchase of at least a dozen residential properties in Maryland and the District of Columbia, including houses in Hyattsville, Ocean City, Fort Washington, and Salisbury, Maryland. Rather than purchase the properties in his own name, the evidence proved that Venson paid straw buyers to appear at the settlements posing as the buyers. Witnesses testified that Venson typically would represent to the straw buyer that he would pay the loan obligation. Venson inflated the price listed on the sales documents to an amount substantially larger than the actual price, causing the mortgage lender to provide funds for the purchase substantially in excess of the actual price. Venson misrepresented and concealed the true purchase price, his arrangement with the straw buyer and other information from the mortgage lender. Under this scheme, the trial evidence showed that Venson reaped $892,368 from the scheme.
Venson also failed to file individual federal income tax returns for 2004, 2005, and 2006 during the period of the scheme.
Venson has been detained since his conviction.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention, and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao/md/Mortgage-Fraud/index.html.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Tuesday, January 18, 2011
Martin Maurice Lewis, Jr., Nicole Lashawn Ware and Brittni Lashawn Fleming, Indicted in Counterfiet Money Scheme
Source- http://www.justice.gov/usao/vae/Pressreleases/01-JanuaryPDFArchive/11/20110118lewisnr.html
RICHMOND, Va. – Martin Maurice Lewis, Jr., 38; Nicole Lashawn Ware, 21; and Brittni Lashawn Fleming, 20, all of Georgia, were indicted by a federal grand jury today on charges of conspiracy, money laundering, and uttering counterfeit obligations.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement. Lewis, Ware and Fleming face a maximum penalty of twenty years’ imprisonment.
According to the indictment, Lewis, Ware and Fleming traveled to various Target stores throughout the Richmond and Tidewater, Virginia areas as part of a scheme to purchase merchandise, mostly electronics, using counterfeit money. Shortly after the initial purchase, the indictment alleges, the defendants would return the items to the same or a different Target location, and would receive genuine United States currency in exchange for the items.
This case was investigated by the United States Secret Service. Assistant United States Attorney Jamie Mickelson is prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Friday, January 14, 2011
Federal Inmate Danilo Suarez and Family Sentenced for Tax Fraud Charges
Source- http://www.justice.gov/usao/fls/PressReleases/110114-01.html
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Daniel W. Auer, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, and John V. Gillies, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, announced that Danilo Suarez, 49, formerly of Key West, a prison inmate, was sentenced today to 60 months’ imprisonment to be followed by 3 years of supervised release for his participation in a scheme to file fraudulent tax returns on behalf of inmates in the Monroe County Jail, in Key West, FL, and others. Defendant Suarez was also ordered to pay restitution in the amount of $58,022.
Sandra Suarez, 25, of Key West, his daughter, and Belkis Mendez, 54, of Key West, his sister, were each sentenced on November 9, 2010 and November 10, 2010, respectively, to 6 months’ imprisonment, to be followed by 3 years of supervised release for their participation in the scheme. Additionally, Sandra Suarez was ordered to pay $33,010 in restitution and Belkis Mendez was ordered to pay $43,959 in restitution. Danilo Suarez, Sandra Suarez, and Belkis Mendez all previously pled guilty to conspiracy to file false, fictitious and fraudulent claims to the IRS in violation of Title 18, United States Code, Section 286.
According to the indictment, defendant Danilo Suarez was a federal prisoner housed primarily at the Monroe County Jail. While incarcerated in the Monroe County Jail, Danilo Suarez began a scheme to defraud the IRS by recruiting and submitting false tax return forms in the name of fellow inmates, former inmates and relatives, for tax years 2004 through 2006. These returns falsely claimed that the purported taxpayers had been employed and paid withholding taxes during the years in question. In fact, however, Danilo Suarez knew that the purported taxpayers had not worked as reported, had not earned the reported income, and had not had income withheld as claimed.
To execute the scheme, Danilo Suarez recruited his daughter, sister and brother, co-defendants Sandra Suarez, Belkis Mendez, and Gilbert Suarez, 47, of Deland, FL, respectively, to receive the resulting IRS refund checks. Danilo Suarez also instructed the co-defendants to cash the checks, sometimes using fraudulent powers of attorneys. Once the checks were cashed, the co-defendants gave the cash to inmate Danilo Suarez, who divided the proceeds between himself, the co-defendants, and the complicit inmates. Danilo Suarez also caused the checks to be cashed, sometimes using fraudulent powers of attorneys. Once the checks were cashed, the money was distributed amongst the complicit inmates, Danilo and his family members.
On December 17, 2010 Gilbert Suarez was found not guilty after a jury trial.
Thursday, January 13, 2011
David A. Cusumano and Henry Nino, Both are Charged With Tax Evasion
Source- http://www.justice.gov/tax/txdv11045.htm
WASHINGTON - A federal grand jury in Detroit has returned a 14-count indictment against Michigan residents David A. Cusumano and Henry Nino, the Justice Department and the Internal Revenue Service (IRS) announced today.
According to the indictment, Cusumano was a mechanical engineer from Plymouth, Mich., and Nino was an electrician from Northville, Mich. Both men are alleged to have committed multiple counts of tax evasion by failing to file income tax returns and maintaining Employee's Withholding Allowance Certificates (IRS Forms W-4) which their employers falsely claimed were exempt from tax withholding.
Both are also charged with corruptly endeavoring to obstruct the administration of the internal revenue laws through the services of Florida-based American Rights Litigators/Guiding Light of God Ministries (ARL) and by other means. The indictment alleges that Cusumano and Nino used ARL to falsely accuse Internal Revenue Service (IRS) workers of criminal acts and to send false documents to the IRS.
Cusumano is also accused of sending fake financial instruments called "Registered Bonds" to the IRS and the Treasury Department while Nino is accused of sending fake financial instruments called "Registered Bills of Exchange" to the Treasury. Nino is also alleged to have willfully failed to file income tax returns for 2007 and 2008.
In August 2004, a federal district judge permanently enjoined ARL and two of its promoters from the sale of a nationwide tax scam. According to court documents, the purpose of ARL's scheme was to thwart the IRS in its attempts to assess and collect taxes by various means. These schemes included manufacturing and selling worthless "bills of exchange" supposedly drawn on the U.S. Treasury for customers to use in purported payment of their taxes, as well as producing false and harassing complaints against IRS employees that were sent to the Treasury Inspector General for Tax Administration in Washington, D.C.
Miami Contractor Axel Rafael Mercado Sentenced to 24 Months in Prison for Employment Tax Fraud
Source- http://www.justice.gov/tax/txdv11044.htm
MIAMI - Axel Rafael Mercado was sentenced today by U.S. District Court Judge Patricia A. Seitz to 24 months in prison for tax evasion, the Justice Department and the Internal Revenue Service (IRS) announced. Mercado was also ordered to pay $352,605 in restitution to the United States.
According to court documents, from 2005 through 2007, Mercado, who owns Mercado Enterprises Inc., attempted to evade a large part of his company's federal employment taxes. To avoid his employment tax obligations, Mercado caused the company's checks to be written to shell companies, which were supposedly legitimate subcontractors, but which in fact did no work for Mercado Enterprises. Mercado would then direct those checks to be cashed at a local check-cashing store, which was aware of the scheme, and use the cash to pay his workers. Mercado never reported the existence of the employees, never reported the cash wages of the employees, never filed employment tax returns and never paid the required employment tax.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and John A. DiCicco, Acting Assistant Attorney General for the Department of Justice, Tax Division, commended the IRS special agents who investigated the matter and Tax Division Trial Attorneys Jason H. Poole and Matthew J. Mueller who prosecuted the case.
Wednesday, January 12, 2011
Federal Court Permanently Bars Sony Ducasse, from Preparing Tax Returns for Others
Source- http://www.justice.gov/opa/pr/2011/January/11-tax-038.html
WASHINGTON – A federal court has permanently barred Sony Ducasse of Greenacres, Fla., from preparing federal income tax returns for others, the Justice Department announced today. The injunction order, to which Ducasse consented, was entered by Judge James Cohn of the U.S. District Court for the Southern District of Florida in West Palm Beach.
The government complaint in the case alleges that Ducasse prepares federal income tax returns for his customers containing false claims for the earned income tax credit or bogus tax deductions. According to the complaint, Ducasse has prepared at least 3,200 returns since 2007 and the Internal Revenue Service (IRS) has imposed over $30,000 in penalties against him for tax-preparer misconduct. The complaint states that the IRS estimates that the lost revenue from the returns Ducasse prepared in the 2007 through 2010 tax filing seasons could exceed $6 million.
In the past ten years the Justice Department’s Tax Division has obtained hundreds of injunctions to stop the promotion of tax-fraud schemes and the preparation of fraudulent returns. Information about these cases is available on the Justice Department website.
Detroit Strip Club Owner Nicholas J. Faranso, Pleads Guilty to Using Computer Software Program to Delete Club's Sales in Order to Cheat on Taxes
Source- http://www.justice.gov/tax/txdv11040.htm
WASHINGTON - Nicholas J. Faranso of Farmington Hills, Mich., pleaded guilty today before U.S. District Court Judge John Corbett O'Meara in the Eastern District of Michigan to one count of conspiracy to defraud the United States, the Justice Department and Internal Revenue Service (IRS) announced. For his role in the conspiracy, Faranso faces a maximum sentence of five years in prison. The court set sentencing for July 14, 2011.
According to court documents, Faranso owned two strip clubs: BT's in Dearborn, Mich., and Tycoon's in Detroit. From 2001 through 2004, both establishments used a computerized point of sales system which produced guest checks and electronically tracked and recorded sales. Court documents reveal that, in 2001,Faranso purchased a computer software program called Journal Sales Remover from Theodore Kramer, a self-employed computer software salesman. This computer software program was specifically designed to remove a portion of the actual sales from the computerized point of sales systems. The program would make it appear that Faranso's clubs received less income than they actually did.
Faranso directed Kramer to put the Journal Sales Remover program onto his businesses' computer systems in order to help the club owner cheat on the businesses' taxes. From about 2001 to about 2004, at Faranso's request, Kramer made periodic visits to Faranso's clubs to run the Journal Sales Remover program to remove a substantial amount of the actual sales from the computerized sales systems. Faranso then provided the reduced sales figures to his accountant. As a result, Faranso falsified the clubs' tax returns by understating their gross receipts by more than $500,000. Kramer previously pleaded guilty to one count of conspiracy on Nov. 17, 2010.
Barbara L. McQuade, U.S. Attorney for the Eastern District of Michigan, and John A. DiCicco, Acting Assistant Attorney General for the Department of Justice, Tax Division, commended the IRS special agents who investigated this matter and Tax Division Trial Attorneys Kenneth C. Vert and Tiwana L. Wright, who prosecuted the case.
Tuesday, January 11, 2011
Homer Lee Richardson Sentenced 30 Months in Prison for Tax Crimes
Source- http://www.justice.gov/opa/pr/2011/January/11-tax-031.html
WASHINGTON - Homer Lee Richardson of Loveland, Ohio, was sentenced today for corruptly endeavoring to obstruct and impede the due administration of the Internal Revenue Code, aiding and assisting in the preparation of a false income tax return on the behalf of another individual, and filing his own false individual income tax returns for the years 1998, 1999 and 2000, the Justice Department announced. Richardson, a former promoter of sham trust systems, had previously pleaded guilty.
U.S. District Court Senior Judge for the Southern District of Ohio Sandra S. Beckwith sentenced Richardson to 30 months in prison and one year of supervised release. The court also ordered Richardson to pay a $60,000 fine and $61,212 in restitution.
According to the indictment, Richardson marketed and promoted sham trusts for an organization known as Aegis. The trusts had no economic substance or business purpose and falsely gave the appearance that Aegis members relinquished control over their assets. Taxpayers who used these trusts filed false federal individual income tax returns understating their income.
In addition, Richardson attempted to obstruct Internal Revenue Service (IRS) audits of his own and at least one other individual’s income taxes. Finally, Richardson filed his own false tax returns which falsely understated his income.
Thomas Robert Turner Indicted for Filing False Income Tax Returns
Source- http://www.justice.gov/opa/pr/2011/January/11-tax-026.html
WASHINGTON - A federal grand jury in Greenbelt, Md., today indicted Thomas Robert Turner, a resident of Prince George’s County, Md., for corruptly endeavoring to obstruct and impede the due administration of the internal revenue laws between 2004 and January 2009, the Justice Department and Internal Revenue Service (IRS) announced. Turner is also charged with filing two false amended individual income tax returns with the IRS for 2004 and 2005.
According to the indictment, Turner worked as a bus driver for D & B Tours Inc., a tour bus company. He, along with at least two other people, caused false corporate income tax returns for 2001, 2002 and 2003 to be filed with the IRS. These corporate returns claimed false refunds of more than $177,000 based upon fraudulently inflated federal fuel tax credits. Turner also filed false individual tax returns for 2002 through 2005, which reported fictitious businesses and claimed more than $70,000 in false refunds based on fraudulently inflated federal fuel tax credits.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Monday, January 10, 2011
Former Haven Health Care Bookkeeper Serena Sylvia, Pleads Guilty to Fraud and Tax Charges
Source- http://newhaven.fbi.gov/dojpressrel/pressrel11/nh011011.htm
David B. Fein, United States Attorney for the District of Connecticut, today announced that SERENA SYLVIA, 42, of Fargo Road, Waterford, waived her right to indictment and pled guilty on Friday, January 7, before United States Magistrate Judge Donna F. Martinez in Hartford to one count of health care fraud and one count of filing a false income tax return.
According to court documents and statements made in court, SYLVIA was employed as a regional accounts receivable manager for Haven Health Care Management, LLC. From 2005 to 2008, SYLVIA embezzled funds from nursing home resident trust fund accounts. The nursing homes affected by SYLVIA’s embezzlement include Haven Health Center of Jewett City, Haven Health Center of Norwich, Haven Health Center of Waterford, and Haven Health Center of Soundview in West Haven. As part of her plea, SYLVIA admitted taking more than $53,000 from the trust fund accounts, and admitted that she did not pay income tax on the money she stole.
SYLVIA is scheduled to be sentenced by Chief United States District Judge Alvin W. Thompson on March 28, 2011, at which time SYLVIA faces a maximum term of imprisonment of 10 years and a fine of up to $250,000 on the health care fraud count, and a maximum term of imprisonment of three years and a fine of up to $100,000 on the false tax return count.
This matter stems from a larger investigation into fraud at Haven Healthcare, a chain of nursing homes formerly headquartered in Middletown, Connecticut. That investigation has resulted in convictions of Raymond Termini, the former CEO of Haven Healthcare; Fred Dalicandro, the former director of Cash management of Haven Healthcare, and Kimberly Boccacio, the former administrator of Haven Health Center of Jewett City.
Owner and Operator of Massachusetts Computer Parts Company Michael A. Daly, Sentenced to 48 Months After Conviction for Wire Fraud and Money Laundering
Source- http://sanfrancisco.fbi.gov/dojpressrel/pressrel11/sf011011.htm
SAN JOSE, CA—The president of Data Resource Group, a company based in Salisbury, Mass., was sentenced today to 48 months in prison for defrauding Cisco Systems of computer networking equipment and engaging in money laundering by selling the fraudulently obtained equipment to other Cisco hardware resellers, U.S. Attorney Melinda Haag announced. Michael A. Daly was also ordered to pay restitution in the amount of $1 million to Cisco and serve a term of three years of supervised release after completion of his custodial sentence.
According to court documents, from approximately June 2003 to February 2007, Daly, 56, of Danvers, Mass., engaged in a scheme to defraud Cisco. To help carry out his scheme, Daily created fictitious personal and company names, obtained e-mail accounts related to those names, and used the fictitious names to rent private mailboxes around the United States. Daly then used the fictitious names to contact Cisco and falsely claim that parts supposedly covered by contracts under Cisco’s SMARTnet warranty program were failed or defective and needed to be replaced.
According to a previously filed indictment, Daly carried out the fraud more than 1300 times and used private mailboxes in 39 states. On each occasion, he obtained equipment with a list price ranging from $995 to $25,000, resulting in a total loss of approximately $15,455,695.
Under the SMARTnet program, Cisco provides customers with technical support, including advance hardware replacement. Advance hardware replacement allows customers to obtain replacement equipment from Cisco immediately, without having first to return the broken part.
Court documents further show that Daly also engaged in money laundering by selling the fraudulently obtained “replacement” parts to Cisco equipment resellers around the country. On a number of occasions, Daly received tens of thousands of dollars from Cisco resellers for fraudulently obtained parts. Daly generally did not return any parts to Cisco and, when he did, he returned parts not covered by SMARTnet and worth little or nothing.
Daly was charged by indictment on May 9, 2007, with multiple counts of wire fraud and money laundering. On April 9, 2009, pursuant to a plea agreement, Daly pled guilty to wire fraud and money laundering and admitted to the forfeiture allegations contained in the Indictment. Today’s sentence was handed down by United States District Court Judge Ronald M. Whyte.
Saturday, January 8, 2011
Rontrail Jamar Williams Sentenced to 96 Months for Wire Fraud
Source- http://www.justice.gov/usao/vae/Pressreleases/01-JanuaryPDFArchive/11/20110107williamsnr.html
ALEXANDRIA, Va. – Rontrail Jamar Williams, 35, of Clinton, Md., was sentenced today to 96 months in prison, followed by three years of supervised release, for his role in a long running wire fraud scheme. Williams was also ordered to forfeit and pay restitution in the amount of $639,598.97.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Andrew Adelmann, Acting Special Agent in Charge of the United States Secret Service’s Washington Field Office, made the announcement after sentencing by United States District Judge Gerald Bruce Lee. Williams pled guilty to a criminal information on Oct. 6, 2010.
According to court documents, Williams produced counterfeit checks and counterfeit drivers’ licenses. He used the counterfeit checks to purchase goods at retail stores in the Eastern District of Virginia and elsewhere, and then converted the goods into cash. Williams also coached others on how to commit similar crimes and supplied them with the means to do so. The scheme lasted from October 2004 through August 2010, and involved conduct in nine states and the District of Columbia.
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Friday, January 7, 2011
Roy W. Bradford was Sentenced to 16 Months in Prison for Filing False Federal Tax Return
Source- http://www.justice.gov/opa/pr/2011/January/11-tax-019.html
WASHINGTON – Roy W. Bradford was sentenced today in federal district court in Dayton, Ohio, for willfully filing a false federal income tax return for 2004, the Justice Department and Internal Revenue Service (IRS) announced. U.S. Judge Thomas M. Rose sentenced Bradford to 16 months in prison and ordered him to pay $379,852 in restitution to the IRS.
On Sep. 22, 2010, Bradford pleaded guilty to willfully filing a false tax return for 2004. According to court documents, Bradford owned and operated Bradford Builders out of his residence in Ludlow Falls, Ohio. Bradford Builders built wooden frames for residential construction.
For the 2003 and 2004 tax years, Bradford filed false Forms 1099 that deliberately inflated the amounts that he paid to his independent contractor crew chiefs. Bradford then used these false amounts from the Forms 1099 to inflate the deductions for labor costs on his 2003 and 2004 individual income tax returns. Bradford also improperly deducted as business expenses many of the costs incurred in constructing his personal residence. Bradford also understated his business income by not reporting money he received for work performed for certain clients.
In addition to falsifying his own tax information, Bradford used false tax ID numbers on the Forms 1099 that he issued to workers who did contract work for him. He also provided false information to an IRS agent during the course of an audit and to another IRS agent conducting the criminal investigation. Bradford admitted that he caused a tax loss of $379,852.
“Tax violations have been erroneously referred to as victimless crimes, but it's the honest law abiding citizen who is harmed when someone tries to manipulate our nation's tax system." said Victor S. O. Song, Chief, IRS Criminal Investigation Division. "Wrongdoers will be held accountable for such actions, and today's sentencing is a costly reminder."
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Thursday, January 6, 2011
Mortgage Broker Douglas Skibicki, Pleads Guilty to Mail Fraud in Scheme to Defraud Lenders, Family, and Others of Over $1.4 Million
Source- http://baltimore.fbi.gov/dojpressrel/pressrel11/ba010611.htm
BALTIMORE—Douglas Skibicki, age 41, of Bethesda, Maryland, pled guilty today to two counts of mail fraud in connection with a mortgage fraud scheme in which he defrauded lenders, family and others.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Chief William J. McMahon of the Howard County Police Department; Special Agent in Charge Richard A. McFeely; Special Agent in Charge Barbara Golden of the United States Secret Service - Baltimore Field Office; and Special Agent in Charge Ken Taylor, Jr. of the Housing and Urban Development Office of Inspector General - Office of Investigations.
According to Skibicki’s plea agreement, he was a mortgage originator and/or broker for a company which operated in Laurel, Maryland. Skibicki admitted that from April 2006 through August 2009, with the assistance of an appraiser and others, he participated in a scheme to defraud lenders, family members and others through a series of real estate transactions.
For example, in May 2007, G.C., who owned a construction company, was facing financial difficulties. G.C. contacted Douglas Skibicki to discuss whether he could help him. Skibicki had previously assisted G.C. in refinancing G.C.’s residence. Skibicki agreed to purchase a 50 percent interest in property G.C. owned at 7609 Bay Street in Pasadena, for $121,000, but told G.C. that Skibicki’s 50 percent interest in 7609 Bay Street would be put in the name of Family Member 3.
In May 2007, G.C. owned 7609 Bay Street free and clear, but there was only a garage with an attached room, as well as an unusable outhouse, built on 7609 Bay Street. There was no running water and no operable bathroom on the property.
On May 9, 2007, the appraiser working with Skibicki completed a fraudulent appraisal of 7609 Bay Street, including that there was a two-bedroom, one-bathroom existing home on the property with a “modern” kitchen and an enclosed porch and pier. The appraiser also included photographs of the front and rear of the home supposedly located at 7609 Bay Street. Those photographs were of a home that was never located at 7609 Bay Street.
In May 2007, Skibicki submitted a fraudulent loan application to National City Bank for a mortgage on 7609 Bay Street in the name of Family Member 3, which contained false statements as to Family Member 3's income and current residence. Family Member 3 did not sign the loan application and neither Family Member 3 nor G.C. signed the settlement documents that were provided to the mortgage company, showing that a settlement for the Bay Street property occurred on May 15, 2007. Based on the false information submitted by Skibicki, National City provided a mortgage on 7609 Bay Street in the amount of $260,971 in the name of Family Member 3. Skibicki received $249,997.18 in the name of Family Member 3 after taxes and closing costs were deducted. Skibicki told the title company handling the settlement to wire $121,000 to a bank account held in the name of G.C.’s construction company, to pay for the 50 percent interest in 7609 Bay Street that Skibicki had purchased in the name of Family Member 3. Skibicki subsequently allowed the mortgage on 7609 Bay Street to go into default, leading to foreclosure proceedings.
In addition, according to the plea agreement, Skibicki and Family Member 1 owned property at 5870 Deer Ridge Lane in Elkridge. On June 2, 2006, Skibicki submitted a loan application for $350,000 to refinance 5870 Deer Ridge Lane. To facilitate the loan application, the appraiser working with Skibicki prepared a fraudulent appraisal indicating that there was a 2,040 square foot home on the property and included a description of the home and photographs purporting to be of the front and back of the home. In fact, there was no home on the property, which was a vacant lot.
In August 2007, with 5870 Deer Ridge Lane still a vacant lot, Skibicki decided to refinance that property again, this time in his name only. On August 18, 2007, the appraiser working with Skibicki completed another fraudulent appraisal of 5870 Deer Ridge Lane stating that there was a 3,297 square foot, five bedroom home on the property that had, among other things, a stone patio, an enclosed and covered porch, and a balcony. Again, the appraiser included photographs purportedly of the front and rear of the home located at 5870 Deer Ridge Lane, but these were photos of a home that was never located there. In October 2007, Skibicki submitted a loan application to Washington Mutual Bank, FA, seeking to refinance 5870 Deer Ridge Lane for $517,500. The loan application indicated that title to the property would be held just by Skibicki, even though Family Member 1 had not given permission to take his name off the title to the property. The loan application also falsely stated that the purpose of the refinancing was a cash-out home improvement and contained false statements as to Skibicki’s employment and income, and that he planned to use 5870 Deer Ridge Lane as his primary residence. Skibicki submitted fraudulent documents in support of the loan application, including fraudulent W-2s for tax years 2005 and 2006. Based on the materially false information that Skibicki provided, on October 23, 2007, Washington Mutual provided a loan in the amount of $517,500. Skibicki allowed the mortgage on 5870 Deer Ridge Lane to go into default, leading to foreclosure proceedings.
Skibicki admitted that he made and caused to be made misrepresentations to other lenders in order to obtain mortgages on additional properties.
As part of his plea agreement, Skibicki has agreed to forfeit all money, property and assets, acquired as a result of, or used to facilitate the fraud scheme, and has agreed to the entry of a $1.4 million forfeiture money judgment.
Skibicki faces a maximum sentence of 20 years in prison and a fine of $250,000 or twice the gross loss or gain of the offense, if greater than $250,000, on each count of mail fraud. U.S. District Judge Catherine C. Blake has scheduled sentencing for April 22, 2011 at 9:15 a.m.
U.S. Attorney Rod J. Rosenstein recognized Howard County State’s Attorney Dario Broccolino and Chief J. Thomas Manger of the Montgomery County Police Department, and their offices, for their assistance in this investigation and prosecution.
In a related action, Mark Kaufman, Commissioner of the Maryland Department of Labor, Licensing and Regulation’s Division of Financial Regulation previously issued a Summary Order to Cease and Desist against Skibicki, prohibiting him from engaging in any further credit services business activities and/or foreclosure consultant activities with Maryland residents.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention, and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available at http://www.usdoj.gov/usao/md/Mortgage-Fraud/index.html.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Marsha Parenteau of Dublin, has been sentenced for conspiring to commit money laundering
Source- http://www.justice.gov/tax/txdv11016.htm
WASHINGTON - Marsha Parenteau of Dublin, Ohio, has been sentenced for conspiring to commit money laundering, the Justice Department and Internal Revenue Service (IRS) announced. U.S. District Court Judge Michael H. Watson on Wednesday sentenced Parenteau to serve 33 months in prison. In addition to the prison term, Judge Watson ordered Parenteau to serve a three year term of supervised release after her prison term, and to pay restitution.
The court also ordered Parenteau to forfeit to the U.S. government a vacant lot in the Wedgewood golf community in Dublin, which was purchased with some of the illegally obtained funds. The court furthered ordered the government to seize Parenteau's personal belongings maintained at two storage garages and the home of a friend, and sell the belongings at auction to pay towards the restitution judgment.
Pamela McCarty of Columbus, Ohio, one of Marsha Parenteau's co-conspirators, was sentenced today for conspiring to commit tax fraud, money laundering and bank fraud. U.S. District Court Judge Michael H. Watson sentenced McCarty to 24 months in prison.
According to court testimony and documents, Marsha Parenteau was the wife of convicted Columbus-area home builder, Thomas Parenteau. Marsha Parenteau conspired with her husband, his accountant Dennis Sartain, McCarty and others to launder unlawful proceeds generated from nearly $19 million in fraudulently obtained loans against a personal residence.
Marsha Parenteau was called as a witness by her husband at his trial in July 2010, in which Thomas Parenteau was convicted of conspiracy to commit tax fraud, money laundering, bank fraud, obstruction of justice and other felony charges. The sentencing for Mr. Parenteau is not yet scheduled.
According to court testimony and documents, McCarty was a real estate agent, whom witnesses during court proceedings described as Thomas Parenteau's mistress. McCarty previously pleaded guilty to conspiring with other individuals at Your Home Source, real estate brokerage company, to defraud the United States by impairing and impeding the IRS by falsely understating amounts paid to workers. McCarty also admitted conspiring with Thomas Parenteau, Marsha Parenteau, Sartain and others to launder unlawful proceeds generated from more than $6 million in fraudulently obtained loans against a personal residence. McCarty further admitted to conspiring with Sartain and others to commit bank fraud by helping a Your Home Source employee fraudulently obtain a mortgage to buy a home from McCarty, which she held in trust for Thomas Parenteau, at an inflated price with an undisclosed kickback.
McCarty participated pro-actively with the government in the investigation of the Parenteaus and Sartain by wearing a recording device and taping conversations with her co-conspirators.
John A. DiCicco, Acting Assistant Attorney General for the Justice Department's Tax Division, commended the IRS Criminal Investigation special agents who investigated the case, as well as Tax Division trial attorneys Richard Rolwing and Sean O'Connell, who prosecuted the case.
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Wednesday, January 5, 2011
Betty Washington and Wendy Delbridge, Separately Plead Guilty for Roles in Tax Fraud Conspiracy
Source- http://www.justice.gov/tax/txdv11011.htm
MONTGOMERY, Ala. - Betty Washington, a resident of Montgomery County, Ala., pleaded guilty to one count of conspiring to defraud the United States, the Justice Department Justice and the Internal Revenue Service (IRS) announced today.
According to charging documents, between October 2009 and September 2010 Washington conspired with others to fraudulently obtain tax refunds by using stolen identities to file false income tax returns. Washington opened up an account at a local bank to receive tax refunds from the scheme and deposited 16 different refunds, issued in the name of 16 different individuals, into the account. When the bank closed the account because of the suspicious nature of the deposits, she opened new accounts at a credit union in her name and in the name of Central Alabama Financial Services.
Over the course of several months, more than 300 false refunds totaling more than $1.4 million were deposited into these accounts. To disburse these proceeds, Washington wrote checks, withdrew cash and obtained official checks payable to various co-conspirators and associates. She retained a portion of the proceeds for herself.
Sentencing has not yet been scheduled. Washington faces 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.
In a separate case, Wendy Delbridge, also a resident of Montgomery County, Ala., pleaded guilty to one count of conspiring to defraud the United States. Both women admitted to working for members of a tax fraud and identity theft conspiracy indicted last month in Montgomery.
According to charging documents, between February 2010 and June 2010 Delbridge conspired with others to fraudulently obtain tax refunds by using stolen identities to file false income tax returns. Delbridge opened up an account at a local bank to receive tax refunds from the scheme. When the bank closed the account because it was receiving tax refunds that were not in Delbridge's name, she opened a new account at a credit union. The two accounts received over $50,000 in false tax refunds, which Delbridge withdrew in cash and provided to a co-conspirator. In return, Delbridge was paid a portion of the fraudulently obtained proceeds.
Sentencing has not yet been scheduled. Delbridge faces a maximum of ten years in prison, three years of supervised release, restitution and a maximum fine of $250,000
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