SACRAMENTO, Calif. – Three Sacramento-area residents have confessed to their roles in a brazen tax fraud conspiracy that attempted to siphon nearly $1 million from the Internal Revenue Service. Sequoiya D. Harris, 35, formerly of Sacramento and Stockton; John A. Owens Jr., 32, of Sacramento; and Dionne Thomas, 53, of Galt, all pleaded guilty today, according to U.S. Attorney McGregor W. Scott.
The scheme, which ran from at least February 2009 through April 2013, relied on a flood of bogus tax returns filed under the names of both the conspirators and unwitting individuals. Court documents reveal the group fabricated hundreds of W-2 forms, falsely claiming employment at nonexistent companies. These fake forms detailed wages and federal tax withholdings that never existed, creating the illusion of legitimate income tax liability – and, crucially, the right to a hefty refund.
The operation wasn’t just about creating phantom income; it was about directing the stolen funds. The fraudulent tax refunds were systematically routed into bank accounts controlled by Thomas, Owens, and another defendant, Joe E. Rodriguez Jr., who then kicked back a “substantial portion” of the proceeds to Harris. All three – Harris, Owens, and Thomas – also filed their own fraudulent returns as part of the conspiracy, deepening their involvement in the scheme.
The scope of the fraud is staggering. The total amount of fraudulent tax refunds sought by the conspiracy reached approximately $997,804. The IRS, before catching on, paid out over $570,000 of those claims. While some of the stolen money may remain unaccounted for, the guilty pleas of three key players represent a significant blow to the operation. The investigation was spearheaded by the IRS Criminal Investigation division.
Rodriguez, the fourth defendant in the case, is scheduled to face a jury trial on June 24, 2019, before U.S. District Judge John A. Mendez. He maintains his innocence and is presumed to be innocent until proven guilty beyond a reasonable doubt. Assistant U.S. Attorney Christopher S. Hales is handling the prosecution.
Harris, Owens, and Thomas are slated for sentencing on September 24, 2019, also before Judge Mendez. Each faces a maximum sentence of five years in federal prison and a $250,000 fine. However, the actual penalties will be determined by the court, taking into account statutory factors and the Federal Sentencing Guidelines, which consider the specifics of each defendant’s role and criminal history.
Related Federal Cases
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- Rodeo Entrepreneur Salman Salman Sentenced for $3.4 Million Tax Evasion Scheme · Ohio
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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