Richard Shane Wright, Prison Tax Scam, Tacoma WA, 2023

TACOMA, WA – RICHARD SHANE WRIGHT, 43, of Tacoma, will spend the next 33 months behind bars after being sentenced in U.S. District Court for his role in a brazen tax fraud scheme targeting the U.S. Treasury. The sentence, handed down by Judge Benjamin H. Settle, also includes three years of supervised release and a hefty $71,885 in restitution.

Wright was one of four individuals indicted in connection with a conspiracy to fraudulently claim over $145,000 in tax refunds. The scheme preyed on incarcerated individuals at the Washington State Penitentiary at Walla Walla, using their names and Social Security numbers to file bogus tax returns. The alleged mastermind, Kenneth Randle Door, awaits trial later this year.

According to court records, Wright joined the operation in late March 2009, contributing to the filing of at least 31 fraudulent returns for the 2007 and 2008 tax years. Door allegedly supplied the inmate information, which Wright and accomplices then used to create and submit falsified W-2 forms and federal income tax returns, all designed to generate fraudulent refunds. The conspirators cleverly targeted recently bankrupt companies to fabricate employment and wage data, masking their illegal activity.

The fraudulently obtained refunds were directed to bank accounts controlled by Wright or his associates. While the scheme attempted to siphon off over $145,000, nearly $72,000 was successfully stolen before being uncovered. This isn’t Wright’s first brush with the law, as he’s now facing the consequences for exploiting vulnerable individuals and undermining the integrity of the tax system.

Judge Settle didn’t mince words at sentencing, stating, “the United States Treasury is not the real victim” of this offense. He emphasized that “the real victims are the millions of people who will be filing their tax returns later this month… Our system relies upon folks who pay their taxes to fund the operation of what is still the greatest country on Earth – perhaps the greatest country that has ever existed.”

Two other co-schemers have already received sentences: Lucy Anne Hyder, aka Lucy Bailey, 53, received eight months in prison in February, and Ruth Louise Branstetter, aka Ruth Bishop, 48, was sentenced to nearly seven months last month. Kenneth J. Hines, Special Agent in Charge of IRS-CI in Seattle, underscored the importance of combating refund fraud, stating, “when people steal from the U.S. Treasury the real victim is every honest taxpayer in America.” The case was investigated by IRS-CI and prosecuted by Assistant United States Attorney Steven Masada.

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