Linus Davar Riggs, Stolen Identity Tax Refund Fraud, Texas 2014

HOUSTON - In a stunning display of brazen deceit, a pair of Houston men have been convicted of perpetrating a massive stolen identity tax refund fraud scheme, leaving a trail of financial devastation in their wake.

Linus Davar Riggs, 32, and Nowell Joshua Cousin, 31, both residents of Houston, were found guilty of filing fraudulent tax returns using identification information that was either stolen or used without lawful authority, announced United States Attorney Kenneth Magidson.

Riggs entered a guilty plea today, while Cousin entered his plea March 10, 2014. Both were convicted of one count of conspiracy to commit mail fraud and one count of conspiracy to submit false claims to the U.S.

According to court records, the defendants used personal identifying information, including names and Social Security numbers, to file at least 266 fraudulent tax returns claiming approximately $1,296,710 in refunds.

Internal Revenue Service (IRS) records indicate that the government paid out approximately $544,846 before Riggs and Cousin were arrested and the scheme discovered. The tax refunds generated by the fraudulent returns were often deposited onto reloadable debit cards and mailed to addresses under control of the conspirators.

Both face up to 20 years in federal prison for conspiracy to commit mail fraud as well as 10 years on the conspiracy to submit false claims. Both convictions also carry a potential $250,000 fine.

U.S. District Judge Kenneth Hoyt, who accepted the pleas, has set sentencing for Riggs on June 16, while Cousin will be sentenced on May 27, 2014. Cousin will remain in custody, while Riggs was permitted to remain on bond pending sentencing. The matter was investigated by the U.S. Postal Inspection Service and IRS-Criminal Investigation, with Assistant U.S. Attorney James R. Buchanan prosecuting the case. The investigation uncovered a web of deceit and corruption that has left many wondering how such a scheme could have gone undetected for so long.

As the investigation continues, authorities are urging taxpayers to remain vigilant and report any suspicious activity to the authorities. The case serves as a stark reminder of the importance of protecting personal identifying information and the severe consequences that can result from engaging in such egregious behavior.

The guilty verdicts in this case send a clear message that those who engage in such schemes will be held accountable for their actions. The U.S. Attorney's Office will continue to work tirelessly to protect the integrity of the tax system and bring perpetrators to justice.

Source: https://www.justice.gov/usao-sdtx/pr/two-convicted-stolen-identity-tax-refund-fraud-scheme