$20M Stolen Identity Refund Heist Unfolds

A massive stolen identity refund fraud ring in Alabama has been busted, with 10 defendants facing a total of $20 million in fraudulent claims, according to a recent indictment.

The indictment, unsealed yesterday, alleges that between January 2011 and December 2013, the defendants filed over 7,000 false tax returns claiming in excess of $20 million in fraudulent claims. The defendants obtained stolen identities from various sources, including a hospital on Fort Benning, an Alabama state agency, and the Alabama Department of Corrections.

Tracy Mitchell, who worked at the hospital, had access to the identification data of military personnel, including soldiers deployed to Afghanistan. Her daughter, Latasha Mitchell, also obtained stolen identities from the Alabama state agency. Keisha Lanier obtained stolen identities from the Alabama Department of Corrections, while Talarious Paige and Patrice Taylor worked in a call center and stole identities.

According to the indictment, the defendants obtained Electronic Filing Numbers in the names of several tax preparation businesses and applied for bank products, which mailed blank check stock to their homes. The defendants then directed anticipated tax refunds to prepaid debit cards, U.S. Treasury checks, and financial institutions, which issued the refunds via checks or prepaid debit cards.

The defendants coordinated the cashing of the refund checks by sending text messages among themselves and cashed the checks at several businesses in Alabama, Georgia, and Kentucky. Each defendant faces a statutory maximum potential sentence of 10 years in prison for the conspiracy charge, 20 years in prison for each wire and mail fraud count, 15 years in prison for each access device fraud count, and a mandatory two-year sentence in prison for each aggravated identity theft count.

The case was investigated by special agents of the Internal Revenue Service – Criminal Investigation and the U.S. Army – Criminal Investigation Division. Trial Attorney Michael Boteler of the Tax Division and Assistant U.S. Attorney Todd Brown for the Middle District of Alabama are prosecuting the case. The U.S. Attorney’s Office for the Middle District of Georgia provided assistance in this matter.

An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants will also be subject to fines, forfeiture, and mandatory restitution.

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