Derma Miller, Identity Theft Conspiracy, Sanford FL, 2023

Derma Miller, a 34-year-old from Sanford, Florida, is headed to federal prison for seven years after being convicted of conspiring to steal nearly half a million dollars in federal tax refunds using the stolen identities of the vulnerable. U.S. District Judge Paul G. Byron handed down the sentence, which also includes a $493,697 money judgment — the full amount Miller and her co-conspirator stole from the U.S. Treasury.

The scam was cold and calculated. Between 2012 and 2014, Miller and her mother, Virginia Miller, filed 226 fraudulent federal income tax returns using personal identity information lifted from individuals who were physically and mentally disabled. The information — Social Security numbers, birthdates, income details — was weaponized to fabricate returns and trigger electronic refunds into a bank account controlled by Derma Miller.

Virginia Miller prepared and submitted the false filings, directing the IRS to deposit the stolen refunds directly into her daughter’s account. Once the money hit, the pair moved fast — withdrawing cash and making purchases for personal gain and to benefit others. The operation ran for two years, bleeding $493,697 from government coffers before investigators closed in.

A federal jury delivered the verdict on July 21, 2016, convicting Derma Miller on charges of conspiracy to steal federal tax refunds and aggravated identity theft. The crimes carry mandatory minimums, and the court showed no leniency — slamming her with the full seven-year term. The financial judgment ensures she’ll owe every stolen dollar, even after release.

Virginia Miller, equally complicit, was sentenced earlier to five years and one month in federal prison for her role in the scheme. The case highlights how familial networks can enable financial crimes, especially when targeting systems like the IRS that rely on automated processing — and how the disabled are often easy prey for predators with access to their data.

The investigation was led by the Department of the Treasury and the Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Karen L. Gable and Nathan W. Hill prosecuted the case, ensuring both women faced consequences. With sentencing now complete, the government has clawed back accountability — but not a single dollar of the stolen cash has been recovered.