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Montgomery Sisters Sentenced to Prison for Stolen Identity Refund Fraud
Loretta Fergerson and her sister, Tracey Fergerson, both of Montgomery, Alabama, have been sentenced to prison for their involvement in a conspiracy to file claims for false income tax refunds using stolen identities.
According to court documents, Loretta Fergerson, owner of the tax return preparation business Fast Tax Cash, filed tax returns using stolen identities from 2005 through 2008 to claim fraudulent tax refunds. Her sister, Tracey Fergerson, participated in the scheme by gathering stolen personal information and cashing refund checks for tax returns filed using the stolen personal information.
U.S. District Judge Mark Fuller ordered the Fergerson sisters to pay $504,305 in restitution to the IRS. Loretta Fergerson was sentenced to 115 months in prison, and Tracey Fergerson was also sentenced to 115 months in prison.
The scheme involved Loretta Fergerson creating false driver’s licenses and Social Security cards to be placed in customer files for returns prepared using stolen identities. Tracey Fergerson also recruited customers for Fast Tax Cash and coached them to provide false information to fraudulently increase their tax refund amounts.
“The stolen identity refund fraud crimes committed by these defendants are an affront to honest, hard-working taxpayers,” said Assistant Attorney General Kathryn Keneally. “The lengthy prison sentences handed down recently by this court, in this and other cases, show the high price that will be paid by identity thieves.”
The IRS has made investigating refund fraud and identity theft a top priority, and the agency will continue to vigorously pursue those who undermine the integrity of the U.S. tax system.
Defendant: Loretta Fergerson and Tracey Fergerson
Criminal Charges: Conspiracy to file claims for false income tax refunds using stolen identities
City and State: Montgomery, Alabama
Exact Date: Not specified
Sentence or Outcome: Loretta Fergerson and Tracey Fergerson each sentenced to 115 months in prison
Dollar Amounts: $504,305 in restitution to the IRS
Key Facts
- State: Federal
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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