Alabama State Worker Pilfered Identities for $1.7M Tax Scam

MONTGOMERY, AL – A brazen betrayal of public trust has come to light as Lea’Tice Phillips, a former employee of an Alabama State agency, has been indicted on multiple federal charges for her role in a sprawling $1.7 million identity theft and tax fraud scheme. The indictment, handed down by a federal grand jury, alleges Phillips exploited her access to sensitive state databases to fuel a criminal enterprise.

According to court documents, between October 2009 and April 2012, Phillips conspired with Antoinette Djonret and others to file false tax returns using stolen identities. Phillips, leveraging her position within the state agency, allegedly accessed confidential databases to obtain means of identification – names, social security numbers, and other personal information – and then transmitted this data via her official state email account to Djonret. This wasn’t a one-off incident; the indictment details multiple instances of this illicit data transfer.

Djonret and her network of co-conspirators then utilized these stolen identities to file over 1,000 fraudulent tax returns, claiming a staggering $1.7 million in bogus refunds. The scheme involved an elaborate money laundering operation. Co-conspirators were recruited to purchase prepaid debit cards, which were then used to collect the fraudulently obtained tax refunds. Disturbingly, some of these prepaid debit cards were registered under the name of Lea’Tice Phillips herself, further implicating her in the scheme’s financial mechanics.

This isn’t an isolated incident. On August 9, 2012, a superseding indictment already charged Antoinette Djonret, Angelique Djonret, Tabitha Stinson, Melba Wilson, Chantresa Hayes, and Corey Means for their participation in the same conspiracy. The investigation, led by Special Agents of the IRS – Criminal Investigation, reveals a coordinated effort to exploit vulnerabilities in the tax system and enrich themselves through illegal means.

Phillips now faces a hefty legal battle. The thirty-seven count indictment charges her with conspiracy to file false claims, wire fraud, computer fraud, and aggravated identity theft. If convicted, she could face up to 10 years imprisonment for the conspiracy charge, 20 years for each count of wire fraud, 10 years for each count of computer fraud, and a mandatory 2-year sentence for the aggravated identity theft charges. Beyond imprisonment, Phillips is also liable for substantial fines, mandatory restitution to the victims, and potential forfeiture of assets.

The case is being prosecuted by Trial Attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant United States Attorney Todd Brown. The Department of Justice emphasizes that an indictment is not a finding of guilt, and Phillips is presumed innocent until proven guilty beyond a reasonable doubt. Further information on the Tax Division’s enforcement efforts can be found at justice.gov/tax.

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