Floyd Nabbed in $7.5M Tax Refund Scam

MONTGOMERY, AL – A former Alabama state employee is facing serious time after pleading guilty to a brazen scheme that saw over $7.5 million in fraudulent tax refunds claimed using stolen identities. Tamika Floyd, 30, of Salem, Alabama, admitted in federal court to conspiracy to defraud the United States and aggravated identity theft.

The Justice Department and the U.S. Attorney’s Office for the Middle District of Alabama announced the guilty plea, detailing a scheme that stretched from 2012 to 2014. Floyd, while employed at two separate state agencies in Opelika, Alabama, abused her position to pilfer sensitive identification information. She wasn’t just glancing at files; she was actively providing names and data to a co-conspirator for criminal purposes.

Court documents reveal a particularly disturbing detail: the vast majority of the stolen identities belonged to teenagers. Floyd allegedly agreed to provide these names in exchange for an unknown benefit. Her co-conspirators then used this information to file over 3,000 bogus federal income tax returns, attempting to siphon off a staggering $7,500,000 in refunds. This wasn’t a petty theft; it was a systematic assault on the federal system.

Tamika Floyd now faces a maximum sentence of ten years behind bars on the conspiracy charge. But that’s not all. Aggravated identity theft carries a mandatory two-year prison sentence, meaning she’ll be doing time regardless of the conspiracy sentencing. On top of that, she could be slapped with a fine of up to $250,000.00 and ordered to pay full restitution for the stolen funds.

The investigation was spearheaded by special agents with the Internal Revenue Service – Criminal Investigation (IRS-CI). The prosecution is being handled by Trial Attorney Michael Boteler of the Department’s Tax Division and Assistant United States Attorney Todd Brown of the U.S. Attorney’s Office for the Middle District of Alabama. A sentencing date has not yet been announced, but the wheels of justice are turning.

This case serves as a stark reminder that even those entrusted with sensitive information can be tempted by greed. The Justice Department is sending a clear message: exploiting vulnerabilities in state databases and stealing identities to defraud the government will not be tolerated. For more information on the Tax Division’s efforts, visit www.justice.gov/tax.

PRESS CONTACT: Clark Morris
Email: usaalm.press@usdoj.gov
Telephone: (334) 551-1755
Fax: (334) 223-7617