Anchorage, Alaska – Earl Worthy, 41, has been handed a 70-month sentence for orchestrating a fraudulent tax refund scheme while an inmate at the Fairbanks Correctional Center.
Worthy was sentenced to pay $159,628 in restitution to the IRS after pleading guilty on May 9, 2016, to conspiracy to defraud the government, mail fraud, and aggravated identity theft. His co-conspirator, Tammy Jackson, received five years of probation.
While incarcerated, Worthy collected personal information from inmates, using it to file false federal income tax returns in collaboration with at least five others, including Jackson. They claimed refunds totaling thousands of dollars by forging signatures and issuing false Forms W-2.
The pair submitted the fraudulent returns through addresses associated with the correctional center and Jackson, cashing checks or depositing funds into controlled accounts. They also directed co-conspirators to retain portions of the proceeds.
Special Agent in Charge Darrell Waldon of IRS CI emphasized the disturbing nature of prison-based identity theft and tax refund fraud, noting a recent string of similar schemes in Alaska. Dean Williams, Commissioner of the Alaska Department of Corrections, highlighted the department’s commitment to public safety and effective law enforcement.
Assistant U.S. Attorney Steven Skrocki prosecuted the case, which was investigated by IRS-CI with assistance from the State of Alaska Department of Corrections. For more information on protecting against identity theft, visit www.irs.gov.
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Key Facts
- State: Alaska
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime|Organized Crime
- Source: Official Source ↗
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