Phenix City Duo Indicted for $2.5M Tax Fraud Scheme

MONTGOMERY, ALA. – The grimy streets of Phenix City were hit by a financial setback as Teresa Ann Floyd (52) and her daughter, Lasondra Miles Davis (37), faced the music yesterday after being indicted for their alleged role in a massive stolen identity refund fraud scheme, US Attorney George L. Beck Jr. and Acting Deputy Assistant Attorney General Larry J. Wszalek revealed.

Floyd and Davis, accused of conspiracy to submit false claims, wire fraud, and aggravated identity theft, are alleged to have masterminded the filing of over 900 federal income tax returns using stolen identities, amounting to more than $2.5 million in fraudulent refunds. Their operations spanned several Phenix City-based tax preparation businesses, including T & L Tax Service and T & C Used Cars & Tax Service.

According to the unsealed indictment, the duo obtained bank products from various financial institutions, which provided them with blank check stock for their scheme. They concocted fake identification documents and bills to dupe these institutions into believing they were dealing with legitimate customers. The fraudulent checks were then cashed at numerous businesses in Alabama and Georgia, while Floyd funneled some of the proceeds into her personal bank account.

Should the defendants be found guilty, they face a statutory maximum sentence of 10 years for conspiracy to file false claims, 20 years for each wire fraud count, 10 years for each theft of public money charge, and a mandatory two-year sentence for the aggravated identity theft counts. They are also at risk of substantial fines, forfeiture, and mandatory restitution.

The investigation was conducted by special agents of the Internal Revenue Service – Criminal Investigation, with Trial Attorney Michael Boteler and Assistant U.S. Attorney Todd Brown leading the prosecution efforts.

For additional information on the Tax Division’s enforcement efforts, visit www.justice.gov/tax. Contact: Clark Morris
Email: usaalm.press@usdoj.gov
Telephone: (334) 551-1755
Fax: (334) 223-7617.