Carlos Smith, Identity Theft, Illinois 2016

State: Illinois
Category: Fraud &#038; Financial Crimes
Source: <a href="https://www.justice.gov/archives/opa/pr/illinois-business-owner-sentenced-prison-stealing-identities-file-false-tax-returns" style="color:#cc0000;" target="_blank" rel="nofollow noopener">DOJ Press Release ÃƒÂ¢Ã¢â‚¬Â Ã¢â‚¬â€

Illinois Business Owner Lands Behind Bars for Identity Theft

A Northern District of Illinois resident has been sentenced to 60 months in prison after being convicted of stealing identities to file false tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo and U.S. Attorney Zachary T. Fardon for the Northern District of Illinois.

Carlos Smith, the owner of CLS Financial Services Inc., stole personal identifying information from individuals who sought credit repair or credit card processing services through his business. The information was then used to file false individual income tax returns.

Smith also stole identities of individuals who worked for Chicago’s Board of Education and used this information to file false individual income tax returns. In total, Smith filed approximately 92 fraudulent income tax returns, claiming more than $1 million in refunds.

Smith directed the fraudulently obtained tax refunds to prepaid debit cards, addresses, and bank accounts he controlled, including accounts opened in the names of individuals whose identities he had stolen. Smith also filed his own false individual income tax returns for 2012 through 2014.

On Oct. 19, 2016, Smith pleaded guilty to aggravated identity theft and theft of government funds. In addition to the term of prison imposed, Smith was ordered to serve two years of supervised release and to pay $633,884 in restitution to the IRS.

The investigation was conducted by special agents of IRS-Criminal Investigation, and the case was prosecuted by Tax Division Trial Attorneys John T. Mulcahy and Sonia M. Owens, and former Tax Division Trial Attorney Assistant U.S. Attorney Ryan R. Raybould.

Smith’s scheme was a brazen attempt to defraud the government and exploit the trust of his clients. His prison sentence serves as a reminder that identity theft will not be tolerated.

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