Alana Wells Sentenced in Stolen Identity Tax Fraud Scheme

Alana Wells of Montgomery, Alabama, is going to prison for her role in a brazen stolen identity refund fraud scheme that ripped off the IRS for over $225,000. The former healthcare employee was sentenced to 26 months in federal prison after admitting she exploited her access to sensitive patient records to fuel a criminal conspiracy.

Wells, who worked at a healthcare company with access to protected patient data, violated HIPAA by stealing names, dates of birth, and Social Security numbers from her employer’s database. She didn’t act alone. Court documents reveal she passed the stolen identities to co-conspirator Fredrick Hill, who then funneled the information to Christopher Davis. Davis and others used the data to file fraudulent federal tax returns with the IRS, cashing in on refunds meant for real taxpayers.

In July 2016, Wells pleaded guilty to one count of conspiracy to commit wire fraud and identity theft, along with a separate count of aggravated identity theft. The scheme relied on the precision and reach of digital crime—using real people’s identities to create phantom tax profiles, slipping past early detection systems, and siphoning public funds.

On top of her 26-month sentence, Wells was ordered to serve three years of supervised release and to pay full restitution to the IRS—$225,081. The judgment underscores the federal government’s aggressive stance on identity theft and tax fraud, especially when insiders betray public trust.

The investigation was led by special agents from IRS-Criminal Investigation, whose forensic tracking of fraudulent filings helped unravel the network. Prosecutors say the case highlights how vulnerable personal data can become when employees with access choose to exploit it for profit.

U.S. Attorney George L. Beck Jr. of the Middle District of Alabama and Principal Deputy Assistant Attorney General Caroline D. Ciraolo credited the conviction to the work of Trial Attorneys Jason H. Poole and Kathryn A. Kimball of the Justice Department’s Tax Division, along with Assistant U.S. Attorney Jonathan S. Ross, who prosecuted the case.