Lea’Tice Phillips, Identity Theft Fraud Scheme, Montgomery AL, 2013

Montgomery, Alabama – Lea’Tice Phillips, a former employee of an Alabama State agency, has admitted guilt for her pivotal role in a massive identity theft fraud scheme that siphoned over $1.7 million from unsuspecting taxpayers.

The United States Attorney George L. Beck, Jr. announced that on May 30, 2013, Phillips pleaded guilty to one count of wire fraud and one count of aggravated identity theft. The case has been a significant blow to the justice system, as it reveals the ease with which state employees can misuse their access to sensitive databases.

According to court documents, Phillips, while working for an Alabama State agency, had unauthorized access to state databases containing personal identification information of individuals. She conspired with Antoinette Djonret and others between October 2009 and April 2012 to file false tax returns using these stolen identities. Phillips utilized her official state email to send the stolen means of identification to Djonret.

Djonret and her co-conspirators, operating primarily from their Montgomery residence, then used these means to file over 1,000 fraudulent tax returns. They employed a complex network of individuals to launder the tax refunds, often directing them onto prepaid debit cards in Phillips’ name.

The scheme was so effective that it claimed nearly $1.7 million in fraudulent refunds before coming to light. Sentencing for Phillips has not been scheduled, but she faces up to 22 years in prison, three years of supervised release, restitution, and a fine of up to $750,000 or twice the loss.

The investigation was led by Special Agents of the IRS – Criminal Investigation, with trial attorneys Jason H. Poole, Michael Boteler from the Justice Department’s Tax Division, and Assistant United States Attorney Todd Brown handling the prosecution.

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