Eaford, Moses Admit Prison Tax Scam in Essex County

Reginald Eaford, 46, and Winfred Moses, 48, both of East Orange, New Jersey, admitted today to running a prison-based tax fraud scheme that bilked the IRS out of more than half a million dollars. The duo filed 112 phony federal income tax returns using stolen inmate data from the Essex County Correctional Facility, U.S. Attorney Paul J. Fishman announced in Newark.

The scam ran from 2013 through August 5, 2014, while Eaford was himself locked up in the same facility—incarcerated from May 20, 2013, to February 12, 2014. From behind bars, he and Moses conspired to steal personal information, including Social Security numbers and dates of birth, from fellow inmates. With those details, they forged W-2 forms claiming the prisoners had earned wages and had taxes withheld—none of which was true.

Using the fake documents, the pair filed fraudulent tax returns and directed IRS refund checks to either the jail or Moses’s East Orange residence. Once the money arrived, the spoils were split between the conspirators and the inmates whose identities were exploited. The total amount sought in bogus refunds: $670,206.

Eaford and Moses each pleaded guilty to conspiracy to make and present false, fictitious, and fraudulent claims to the IRS. The charge carries a maximum sentence of five years in federal prison and a fine of $250,000—or twice the gross gain or loss from the offense. U.S. District Judge William H. Walls accepted the pleas in Newark federal court.

Sentencing is scheduled for March 28, 2017. The investigation was led by IRS–Criminal Investigation, under Special Agent in Charge Jonathan D. Larsen; postal inspectors from the U.S. Postal Inspection Service, directed by Inspector in Charge James V. Buthorn; and the Internal Affairs Division of Essex County Jail, overseen by Warden Roy Hendricks.

The government is being represented by Assistant U.S. Attorney Francisco J. Navarro of the Criminal Division in Newark. Eaford is represented by Assistant Federal Public Defender Lisa Mack, Esq. Moses is represented by Leigh-Anne Mulrey, Esq., of Morristown, New Jersey.