Davie Tax Scammer Pleads Guilty To $22M Fraud Scheme

GRIMY TIMES EXCLUSIVE: Freddie Howard, a 56-year-old from Davie, Florida, has pleaded guilty to orchestrating a massive tax refund fraud scheme that siphoned over $22 million from the IRS. The fraudulent activities were carried out through his tax preparation business, QTS1, Inc., under the guise of Quality Tax Service.

Howard’s scheme involved using both stolen and provided identity information to file false tax returns with inflated refund claims. His victims ranged from willing participants to those whose identities were unknowingly compromised. The returns typically requested refunds between $60,000 and $1,400,000, all paid via U.S. Treasury checks.

The plea documents reveal that Howard submitted over $22 million in fraudulent claims, resulting in actual payouts of nearly $4.5 million. One particularly audacious act was the submission of a false return for ‘J.E.’, which led to a $398,502.52 refund check being sent to Coral Springs.

United States Attorney Wifredo A. Ferrer and federal agents from the FBI and IRS-CI have been instrumental in the investigation. The case is prosecuted by Assistant U.S. Attorney Michael N. Berger. Sentencing for Howard is scheduled for August 29, 2014, at 10:15 a.m., where he faces up to 22 years in prison.

Victims and taxpayers are urged to remain vigilant against similar schemes, as the IRS continues its efforts to combat identity theft tax refund fraud. For more information on this case, visit the United States Attorney’s Office for the Southern District of Florida or the District Court for the Southern District of Florida.