Bryant Thompson, Identity Theft and Tax Fraud, Alabama 2014

Two former Alabama corrections officers were sentenced for their roles in a stolen identity refund fraud scheme. Bryant Thompson was sentenced to serve 120 months in prison and Quincy Walton was sentenced to serve 84 months in prison for their crimes.

Thompson and Walton, both former corrections officers in the state of Alabama, were convicted of conspiracy to defraud the United States following a week-long jury trial in January 2014. Thompson was also convicted of seven counts of wire fraud and seven counts of aggravated identity theft, and Walton was also convicted of one count of aggravated identity theft.

According to evidence introduced at trial, Thompson was assigned to the shift clerk position at an Alabama state prison, which gave him access to the personal identifying information of every inmate in the custody of the Alabama Department of Corrections, past and present. Thompson and Walton, his former co-worker, used information stolen from the databases to file false federal income tax returns in the names and Social Security numbers of inmates.

The investigation revealed that several internet protocol (IP) addresses were used to file the fraudulent tax returns, including one IP address directly assigned to Thompson’s residence at the time certain tax returns were filed. Circumstantial evidence tied both Thompson and Walton to the other IP addresses.

The two directed the stolen tax refunds onto prepaid debit cards and requested other refunds in the form of U.S. Treasury checks. Evidence showed that the cards and checks were mailed to several addresses associated with Thompson and Walton in Montgomery and Prattville, Alabama, and that several of the checks were cashed at a local retail store by Walton’s uncle and by a local check casher. During this time, Thompson purchased a new paint job and new rims for his SUV and later purchased a BMW.

According to evidence from the sentencing, altogether Thompson and Walton filed over 180 false tax returns claiming over $750,000 in tax refunds. The IRS was able to identify many of the returns as fraudulent when filed and did not pay the refunds claimed, but was defrauded into issuing a total of $176,114 in improper refunds.

Thompson and Walton have been ordered to pay $176,114 in restitution. The case was investigated by IRS-Criminal Investigation and was prosecuted by Trial Attorneys Jason Poole and Alexander Effendi of the Tax Division, with the assistance of the U.S. Attorney’s Office for the Middle District of Alabama.

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