Michael Whittaker, ID Theft and Tax Fraud, Maryland 2016

WASHINGTON – In a shocking turn of events, two Maryland residents, Michael Whittaker, 31, of Cumberland, and Wayne Gardner, 49, of Capitol Heights, pleaded guilty to federal charges for their involvement in a far-reaching stolen identity refund fraud scheme.

According to court documents, the overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $42 million. Whittaker and Gardner are among approximately 18 participants in this scheme who have pleaded guilty to charges in the U.S. District Court for the District of Columbia.

The charges carry statutory maximum prison terms of five years and 10 years, respectively, as well as potential financial penalties. As part of the plea agreements, Whittaker and Gardner agreed to pay restitution to the IRS in the amounts of $397,090 and $158,160, respectively, which represent the value of the U.S. Treasury checks that were negotiated as a result of their conduct.

U.S. District Judge Ellen S. Huvelle set sentencing for May 18, 2016. The guilty plea stems from Whittaker and Gardner's involvement in a massive and sophisticated stolen identity refund fraud scheme that involved an extensive network of more than 130 people, many of whom were receiving public assistance.

According to the government's evidence, the refunds were sought for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts, and incarcerated prisoners. Returns were also filed in the names of, and refunds were issued to, people who were willing participants in the scheme.

Whittaker obtained the means of identification of third parties, including names and social security numbers, and provided them to a co-conspirator for use in the preparation of fraudulent income tax returns. Whittaker admitted to providing 21 means of identification from August 2010 to May 2012. He also permitted various residential addresses that he controlled to be used as purported taxpayer addresses for the delivery of tax refund checks and deposited U.S. Treasury checks that were received as part of this scheme into his bank accounts.

Gardner admitted to providing 65 means of identification to a co-conspirator between August and December 2010. Whittaker admitted that he was involved in the filing of 135 fraudulent tax returns that sought refunds of approximately $494,902. Gardner admitted that he was involved in the filing of 116 fraudulent tax returns that sought refunds of approximately $299,984.

Source: https://www.justice.gov/usao-dc/pr/two-maryland-men-plead-guilty-federal-charges-roles-massive-identify-theft-and-tax-fraud