Howard Webber, a 52-year-old former Marin County resident, was convicted today after a two-week federal trial for running a brazen tax refund scam that preyed on fellow inmates. The jury found Webber guilty of conspiring to steal identities from prisoners across California and Wisconsin, then using them to file over 700 fraudulent federal income tax returns. The scheme netted more than $600,000 in stolen refunds from the IRS.
While locked up at San Quentin State Prison, Santa Clara County jail, and the Milwaukee Secure Detention Facility, Webber recruited inmates by promising access to government benefits. He collected names and Social Security numbers under false pretenses, even setting up a shell company called Inmate Assets Recovery and Liquidation Services LLC to give the operation a veneer of legitimacy. Teaming up with Clifford Bercovich, 69, of San Rafael, Calif., Webber weaponized stolen identities to fabricate income and claim refunds that never belonged to them.
The pair listed a post office box as the return address for the fake filings and used it to collect refund checks. In some cases, they rerouted funds directly into bank accounts they controlled. The IRS, whose systems were exploited during peak tax seasons, became the unwitting pipeline for their criminal enterprise. Evidence at trial showed the duo filed returns claiming wages and credits for inmates who earned nothing—refunds that should have gone to honest taxpayers.
U.S. Attorney Brian J. Stretch didn’t mince words: “Today’s guilty verdict brings a just end to Mr. Webber’s scheme to defraud the United States.” He vowed continued crackdowns on those who profit by stealing identities and gaming the tax system. “This office will continue to devote its resources to ensure that those who enrich themselves by using the identities of others and filing false tax returns are apprehended and prosecuted.”
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division used the conviction as a warning shot: “As the IRS filing season begins this week, today’s conviction sends a clear message to those contemplating stealing identities and using the information to obtain fraudulent refunds – plan on getting caught and facing significant jail time.”
Webber now faces a maximum of 20 years for mail fraud and conspiracy, plus a mandatory two-year minimum for aggravated identity theft. Sentencing is set for May 16, 2017, before Judge Richard Seeborg. Bercovich, his co-conspirator, already pleaded guilty in December 2016 to conspiracy, mail fraud, and aggravated identity theft, and awaits sentencing on April 11, 2017. Restitution, supervised release, and financial penalties loom ahead for both men.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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