Alabama Man Facing Stiff Charges in $2.5M Tax Refund Fraud Scheme

Montgomery, Alabama – The grim halls of justice are once again echoing with a tale of financial deceit as Harvey James faces a 34-count indictment for an elaborate multi-million dollar tax refund fraud scheme. George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama, announced that the defendant is accused of using stolen identities to file over 2,000 false federal and state income tax returns.

According to the charges, James obtained sensitive inmate information from the Alabama Department of Corrections, then utilized these identities to file claims for fraudulent refunds ranging over $2.5 million. The accused directed some of the illicit proceeds to be funneled through prepaid debit cards and checks sent to various addresses along a Montgomery postal route.

Between 2010 and 2012, James’ scheme resulted in a web of deceit that preyed on the U.S. tax system. If convicted, the 34-year-old faces up to 20 years imprisonment for each mail fraud count, plus a mandatory two-year sentence for aggravated identity theft. The gravity of his actions does not end there; James is also at risk for substantial fines and mandatory restitution.

The investigation into this fraudulent enterprise was spearheaded by Special Agents from the IRS – Criminal Investigation. The prosecution team, led by Jason H. Poole and Michael Boteler of the United States Department of Justice’s Tax Division, along with Assistant United States Attorney Todd Brown, is determined to see justice served.

As the case proceeds, the public is reminded that an indictment merely implies wrongdoing and that the defendant is presumed innocent until proven guilty beyond a reasonable doubt. For more information on the Justice Department’s Tax Division and its enforcement efforts, visit justice.gov/tax.

For inquiries or press contacts, please reach out to Clark Morris at usaalm.press@usdoj.gov, (334) 551-1755, or via fax at (334) 223-7617.

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