St. Croix Woman Gets 18 Months for Tax Fraud Scheme

ST. CROIX, USVI – Thema Liverpool, a 33-year-old resident of St. Croix, Virgin Islands, is headed to federal prison after being sentenced to 18 months incarceration for her involvement in a brazen tax fraud scheme. U.S. Attorney Gretchen C.F. Shappert announced the sentence, handed down by Judge Wilma A. Lewis on December 2, 2021. Following her release, Liverpool will face three years of supervised release and a hefty restitution order of $83,111.71 – the full amount of fraudulently obtained tax refunds deposited into her accounts.

The scheme, active from January 2011 to July 2012, revolved around the theft of personal identifying information – names, Social Security numbers, and dates of birth – used to file false tax returns. These returns were electronically filed, directing refunds to bank accounts and debit cards controlled by Liverpool and her co-conspirators. Once the ill-gotten funds hit the accounts, they were quickly withdrawn, spent on debit cards, or transferred to other accounts, all for personal enrichment. Liverpool pled guilty to Conspiracy to Defraud the United States on November 18, 2019.

Liverpool isn’t acting alone. This was a widespread operation. Of the ten individuals initially charged in the scheme, she is the ninth to admit guilt. The tenth, Jacinta Gussie, faced a six-day trial in June 2021 and was found guilty of Conspiracy to Defraud the United States, four counts of Theft of Government Money, and two counts of Aggravated Identity Theft. Gussie received a significantly harsher sentence – 3.75 years in prison – and was ordered to pay $44,561.11 in restitution on November 12, 2021.

The unraveling of this complex fraud is the result of a years-long investigation by the Internal Revenue Service-Criminal Investigations (IRS-CI). Agents painstakingly identified and dismantled a massive stolen identity refund fraud scheme, not just in the Virgin Islands, but extending to other locations. The IRS-CI’s work highlights the persistent threat of identity theft and the lengths criminals will go to exploit the tax system.

Assistant U.S. Attorney Melissa Ortiz is leading the prosecution, building the case against Liverpool and her co-conspirators. This sentencing sends a clear message: exploiting the federal tax system for personal gain will not be tolerated. The US Attorney’s office continues to prioritize cases involving financial fraud and identity theft, particularly those impacting the integrity of the US Treasury.

The Grimy Times will continue to follow this case and report on any further developments. The sentencing of Thema Liverpool serves as a stark reminder of the financial cost of these schemes and the dedication of law enforcement to bring perpetrators to justice. This case underscores the ongoing need for vigilance in protecting personal information and reporting suspected fraud to the appropriate authorities.