Inmate Identity Theft Ring: Harvey James Admits Guilt

MONTGOMERY, AL – Harvey James is facing serious time after admitting his role in a brazen scheme to steal identities and file fraudulent tax returns. The Alabama man pleaded guilty to one count of mail fraud and one count of aggravated identity theft, federal authorities announced today, exposing a years-long operation that siphoned over $1,000,000 in ill-gotten gains.

According to court documents, James, along with his sister Jacqueline Slaton and others, obtained stolen identities from individuals with access to inmate information held by the Alabama Department of Corrections. This wasn’t a smash-and-grab; it was a calculated, sustained effort spanning several years. They exploited vulnerable prisoner data to file false federal and state tax returns, directing the refunds to prepaid debit cards and checks.

The scheme escalated in 2012 when the crew enlisted Vernon Harrison, a U.S. Postal Service mail carrier. Harrison, motivated by “substantial payments,” acted as an inside man, providing mailing addresses for the debit cards and then diverting them directly into the hands of James and his co-conspirators. This level of collusion with a postal worker demonstrates the depth of their criminal network and their willingness to corrupt public servants.

Between 2010 and 2012, the group filed *hundreds* of fraudulent tax returns, collectively attempting to claim over $1,000,000 in refunds. The sheer scale of the operation highlights the significant financial damage inflicted upon taxpayers. While James is now facing the music, his sister Jacqueline Slaton has already been sentenced to 70 months in prison for her involvement.

Vernon Harrison was also caught and convicted by a jury in July 2013, and is scheduled to be sentenced on October 31, 2013. James now faces a minimum sentence of two years behind bars and a potential maximum of twenty-two years, along with three years of supervised release, restitution, and a fine of up to $250,000. The investigation was spearheaded by Special Agents of the IRS – Criminal Investigation.

Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division and U.S. Attorney for the Middle District of Alabama George L. Beck Jr. are prosecuting the case, with Trial Attorneys Jason H. Poole and Michael Boteler of the Tax Division and Assistant U.S. Attorney Todd Brown leading the charge. Anyone with information about similar schemes is urged to contact the Department of Justice at justice.gov/tax. Press inquiries can be directed to Clark Morris at usaalm.press@usdoj.gov or (334) 551-1755.