Andrew J. Watts, Stolen Identity Tax Refund Scam, Illinois 2012

Andrew J. Watts, a Barbados national, was sentenced in Chicago by U.S. District Judge Joan Gottschall to 114 months in prison for devising and executing a stolen identity federal income tax refund fraud scheme.

Watts filed false federal income tax returns in the names of deceased taxpayers seeking fraudulent refunds. He either signed the name of the deceased taxpayer to the tax return, or would falsely list himself as the deceased taxpayer’s representative.

Between 2007 and 2011, Watts filed over 470 false federal income tax returns, claiming fraudulent refunds in excess of $120 million, and the IRS issued refunds in excess of $10 million.

Watts directed the IRS to either mail the refund checks to an address he controlled or to electronically deposit the refund into a bank account under his control.

As part of the scheme, Watts added to the grief and burdens of the families of the deceased individuals whose identities he stole.

The case was investigated by IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney Patrick J. King, Jr. and Trial Attorney Michelle Petersen.

Watts pleaded guilty to one count of mail fraud and one count of aggravated identity theft on July 10, 2012.

He was ordered to pay restitution of just under $1.7 million.

“Individuals who commit refund fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law,” said Richard Weber, Chief, IRS-Criminal Investigation.

More information about the Tax Division’s enforcement efforts is available at www.usdoj.gov/tax/.

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