VALDOSTA, GA – A network of fraudsters in Valdosta, Georgia, is facing federal prison time after pleading guilty to a sprawling tax fraud scheme that pilfered over $670,000 in taxpayer money. The operation, which ran from 2010 to 2012, relied on stolen identities to file hundreds of fraudulent tax returns.
Belinda Harris, age 33, of Valdosta, GA, entered a guilty plea on April 4, 2018, before Senior District Court Judge Hugh Lawson to one count of conspiracy to commit mail and wire fraud, present false claims, steal and embezzle public money, and possess unauthorized access devices, alongside one count of aggravated identity theft. She faces a maximum sentence of seven years in Federal prison and is responsible for restitution of the refund money received. Co-conspirators Cynthia Clarkston, age 38, of Valdosta, GA; Susie Hall Sherman, age 46, formerly of Valdosta, GA; and Johnny Gary a/k/a Johnny Sherman a/k/a “Little Johnny,” age 27, of Valdosta, Georgia, all pleaded guilty to conspiracy charges. Tanya Franklin, age 42, of Valdosta, Georgia, also admitted guilt to one count of theft of government funds.
The scheme centered on obtaining stolen identity information – over 100 identities, in fact – reportedly sourced from an employee at Valdosta State University by Johnny Gary. Investigators with the Lowndes County Sheriff’s Office and the U.S. Secret Service discovered the stolen data during searches of the homes of Harris, Clarkston, and Sherman. The Internal Revenue Service investigation revealed 222 fraudulent federal income tax returns for 2010 and 2011 linked to the conspiracy, totaling a claimed $670,860.00 in refunds. A staggering $258,914.00 was actually disbursed to the perpetrators.
Victims interviewed by investigators confirmed the returns filed in their names were entirely fabricated and filed without their authorization. The ring didn’t just file false returns; they also needed a way to cash the fraudulent checks. That’s where Tanya Franklin came in. Franklin admitted to knowingly cashing 99 U.S. Treasury checks through her business bank accounts, totaling $334,380.10, including those obtained by Sherman, Clarkston, and others involved in the scheme. Franklin faces up to 10 years in federal prison and over $300,000 in restitution.
Clarkston, Sherman, and Gary each face up to five years imprisonment and restitution of the stolen taxpayer money. U.S. Attorney Charles E. Peeler emphasized the collaborative effort that brought the group down. “This case is another example of good work by both local and federal investigators partnering to bring people making a living stealing both identities and money to justice,” Peeler stated. “Through diligent effort over the course of a lengthy investigation, this group of individuals lining their own pockets at the expense of those whose identities were taken and American taxpayers, will now pay for what they have done.”
Thomas J. Holloman, Special Agent in Charge of IRS Criminal Investigation, echoed Peeler’s sentiments. “Today’s plea is another example of the great work being done by our agents,” Holloman said. “We will continue to utilize the resources of our law enforcement to pursue and prosecute those who attempt to defraud the U.S. Treasury.” This investigation serves as a stark reminder that identity theft and tax fraud are serious federal crimes with severe consequences. The U.S. Attorney’s Office remains committed to working with the IRS and other agencies to hold these criminals accountable.
Related Federal Cases
- Angela Miller and Lee Lynwood, Tax Return Fraud, Georgia, 2008 · Georgia
- Kimberly Michelle Banks, Identity Theft Tax Fraud Scheme, GA, 2023 · Georgia
- Willie C. Grant, ID Theft and Tax Refund Fraud, Macon GA, 2008 · Pennsylvania
- Maurice Hester Sentenced to 64 Months for Tax Fraud, Milledgeville … · Georgia
- Irene Tamika Smith, Tax Fraud Conspiracy, Cordele GA, 2023 · Georgia
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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