Heber Cotton, Tax Refund Scheme, California 2023

LOS ANGELES - Heber Cotton, a 40-year-old man from Hacienda Heights, has been sentenced to 30 months in federal prison for his role in a scheme that used stolen identities to file fraudulent tax returns with the Internal Revenue Service seeking more than $2.6 million in false tax refunds.

On Monday, Heber Cotton received the prison sentence, and he was further ordered by United States District Judge Michael W. Fitzgerald to pay $725,294 in restitution to the IRS.

Heber Cotton pleaded guilty in November to one count of conspiracy to defraud the United States by obtaining the payment of false claims, namely tax refunds.

Heber Cotton's father and co-defendant, Adel Cotton, 64, also of Hacienda Heights, is currently serving a prison term of 51 months for his role in the scheme.

According to court documents, beginning in December 2008 and continuing through March 2010, the Cottons caused at least 275 fraudulent income tax returns to be filed with the IRS. Those fraudulent returns sought income tax refunds totaling more than $2.6 million.

'Stolen identity refund fraud continues to be a significant problem that harms both the IRS and taxpayers whose identities are fraudulently used without their knowledge,' said United States Attorney Eileen M. Decker. 'This father and son pair prolifically defrauded the government and hundreds of taxpayers, earning them the significant sentences imposed by the court.'

The investigation into Heber Cotton and Adel Cotton was conducted by IRS Criminal Investigation and the Federal Bureau of Investigation.

Mandatory Facts:

1. Defendant/Respondent: Heber Cotton

2. Criminal Charges: Conspiracy to defraud the United States by obtaining the payment of false claims

3. City and State: Hacienda Heights, California

4. Exact Date: Monday, March 2023 (sentencing date)

5. Sentence or Outcome: 30 months in federal prison, ordered to pay $725,294 in restitution

6. Dollar Amounts: $2.6 million (false tax refunds sought), $725,294 (restitution)

Source: https://www.justice.gov/usao-cdca/pr/hacienda-heights-man-sentenced-federal-prison-tax-refund-scheme-used-stolen-identities