VALDOSTA, GA – Kendrick Manning, 42, of Valdosta, is headed to federal prison for 60 months after admitting to a sprawling conspiracy to steal from the U.S. Treasury and vulnerable citizens. Manning was sentenced May 9, 2018, by U.S. District Court Judge Hugh Lawson on charges of Conspiracy to Embezzle Public Monies and Possess Stolen U.S. Treasury Checks, following a guilty plea entered January 18, 2018.
The scheme, dating back to 2011, involved Manning obtaining personal identifying information – including details of nursing home residents and state prisoners – from unnamed co-conspirators. He then used this stolen data to file fraudulent income tax returns using computer-based systems. The ill-gotten gains weren’t just direct deposits; Manning and his crew also utilized debit cards loaded with stolen refunds. The scope of the fraud is staggering: 102 fraudulent returns for the 2010 tax year alone, claiming $450,000 in refunds, with nearly $300,000 actually paid out. For 2011, the number jumped to approximately 432 fraudulent returns totaling over $3.7 million, with $1,185,259 successfully stolen.
But the fraud didn’t stop with tax refunds. In 2013, the operation expanded to include cashing stolen and fraudulently obtained U.S. Treasury checks. Manning admitted to knowingly receiving these checks, which included not only tax refunds but also payments from the Thrift Savings Plan, Social Security, and other government programs. He and his accomplices deposited these checks into bank accounts, converting them to cash. The total intended loss resulting from Manning’s actions is estimated at over $4.7 million.
U.S. Attorney Charles E. Peeler for the Middle District of Georgia stressed the severity of the crime. “It is disheartening that tax fraud and identity theft is so prevalent,” Peeler stated. “My office is committed to prosecuting those individuals who defraud others and the United States.” As part of the sentence, Manning has been ordered to pay over $2 million in restitution to the U.S. Department of Treasury, Citizens Bank in Nashville, Georgia, and ABA Insurance Services, Inc.
IRS Criminal Investigation Special Agent in Charge Thomas J. Holloman highlighted the ongoing threat of identity theft. “Even though the tax filing season is over, taxpayer’s need to remain vigilant in protecting their identifying information as the criminals commit their fraud year round,” Holloman warned. Clint Bush, Resident Agent in Charge of the United States Secret Service, emphasized the human cost. “This case is another example that clearly shows criminals are continuing to steal personal identifying information for the purpose of committing fraud,” Bush explained. “In this case, United States Citizens were violated by having their PII stolen along with their legitimately issued tax refund checks. Many of these victims were counting on their tax refund to survive.”
The investigation was a joint effort between the Internal Revenue Service – Criminal Investigation and the United States Secret Service. Assistant United States Attorney Robert handled the prosecution. This case serves as a stark reminder that those who prey on vulnerable citizens and steal from the government will be brought to justice, even if it takes years of painstaking investigation to unravel the web of deceit.
Related Federal Cases
- Angela Miller and Lee Lynwood, Tax Return Fraud, Georgia, 2008 · Georgia
- Kimberly Michelle Banks, Identity Theft Tax Fraud Scheme, GA, 2023 · Georgia
- Willie C. Grant, ID Theft and Tax Refund Fraud, Macon GA, 2008 · Pennsylvania
- Maurice Hester Sentenced to 64 Months for Tax Fraud, Milledgeville … · Georgia
- Jatin Patel and Donna Evans Moore, Stolen Treasury Checks Scam, Tif… · Georgia
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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