Clearwater Woman Cops to $74K Tax Fraud

TAMPA, FL – Makaeia Demps, a resident of Clearwater, Florida, has pleaded guilty to aggravated identity theft in connection with a scheme to defraud the United States government through fraudulent income tax returns. United States Attorney A. Lee Bentley, III announced the guilty plea today, signaling a likely trip to federal prison for Demps.

The scheme, which unfolded in late 2011, came to light after Clearwater Police arrested Demps. Officers discovered two debit cards in her possession, loaded with funds directly obtained from illegally filed tax returns. Crucially, they also found a handwritten list containing the names and personal identifying information of two other individuals – the seeds of her fraudulent operation.

A subsequent investigation led by the Internal Revenue Service-Criminal Investigation (IRS-CI) quickly connected Demps to a string of transactions made using those illicit debit cards. The probe revealed that Demps had used the stolen identities to claim approximately $74,000 in fraudulent income tax refunds. Among the purchases made with the stolen funds was a vehicle, bought in October 2011.

Federal prosecutors are building their case on the direct link between Demps and the fraudulent activity. The plea agreement confirms her direct control over the debit cards and the identities used to generate the false refunds. This isn’t a case of simple possession; Demps actively participated in the exploitation of others’ personal information for personal gain.

Demps now faces a mandatory minimum sentence of two years in federal prison for the aggravated identity theft charge. While a sentencing date has not yet been set, legal experts expect the court to consider the significant financial impact of Demps’ crimes when determining the final penalty. Assistant United States Attorney Jay L. Hoffer is prosecuting the case.

The IRS-CI, with support from the Clearwater Police Department, conducted a thorough investigation, demonstrating the agency’s commitment to combating tax fraud and identity theft. This case serves as a stark warning: stealing identities and defrauding the government carries severe consequences, and the IRS-CI will relentlessly pursue those who engage in such criminal activity.