Two Virgin Islands women are facing federal charges in a brazen tax refund scam that ripped off the U.S. Treasury for over $100,000 using stolen identities. Phiona A. Henry, 32, and Patricia Henry, 48, were indicted on January 12, 2017, by a Virgin Islands grand jury on 12 counts including conspiracy to defraud the United States, theft of government property, and aggravated identity theft.
The scheme, hatched across St. Croix and reaching into Florida, relied on fraudulent tax returns filed with the IRS using real Social Security numbers and personal details ripped from unsuspecting victims. Prosecutors say the duo funneled illicit refunds into their own bank accounts, exploiting the tax system with cold precision. The Internal Revenue Service, Criminal Investigations led a multi-year probe to unravel the operation.
Patricia Henry, 48, appeared before Magistrate Judge George W. Cannon in St. Croix on January 20, 2017, and was released pending trial. Phiona A. Henry, 32, made her initial court appearance on February 1, 2017, before Magistrate Judge Thomas Smith in Orlando, Florida. A detention hearing for Phiona is scheduled for the following day in Orlando, as authorities weigh flight risk and public safety.
The indictment details a calculated fraud: fake W-2s, falsified income figures, and routing of IRS payments to accounts controlled by the defendants. Each false return was a theft from the public coffers, stacking up to a total of more than $100,000 in illegal refunds. The use of others’ identities to commit the crimes triggers the mandatory two-year sentence for aggravated identity theft—on top of possible ten-year prison terms and $250,000 fines per defendant.
The case is being handled by Assistant U.S. Attorney Alphonso Andrews, Jr., under the umbrella of the U.S. Attorney’s Office for the Virgin Islands. The IRS Criminal Investigations unit spent years tracing digital footprints, bank logs, and paper trails to build the case. Investigators say this type of refund fraud is not a victimless crime—it drains resources and slows legitimate returns.
U.S. Attorney Ronald W. Sharpe stressed that an indictment is not a conviction. “Every defendant is presumed innocent until proven guilty,” Sharpe said. “But when fraud reaches this scale, we respond with full federal force.” The case now moves toward trial, with taxpayers watching closely.
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Key Facts
- State: Virgin Islands
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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