Stahlman Nabbed for $95K Tax Refund Scam

TACOMA, WA – Barbara Holly Stahlman, 42, of Pierce County, is facing serious time after pleading guilty to a calculated scheme to defraud the U.S. government. Stahlman admitted in U.S. District Court to wire fraud and aggravated identity theft, pilfering over $95,000 in fraudulent tax refunds.

The scheme, uncovered by the Internal Revenue Service Criminal Investigation and prosecuted by Assistant United States Attorney David Reese Jennings, involved Stahlman illegally claiming refunds using the personal information of unsuspecting citizens. According to court records, between 2010 and 2013, Stahlman submitted 108 bogus tax returns through TurboTax.com and TaxACT.com. Forty-four of those returns were accepted by the IRS, resulting in fraudulent payouts totaling $95,331.

“Just days ahead of the April 15 tax filing deadline, this case exemplifies the kind of damage we see from these tax refund identity theft schemes,” stated U.S. Attorney Jenny A. Durkan. “Whether it is a one person fraud operation, or a sophisticated cyber hack, we are prioritizing these cases to protect taxpayers and the important resources they provide.” Stahlman, already in custody since August 2013, will be sentenced by U.S. District Judge Ronald B. Leighton on July 11, 2014, and faces a mandatory minimum of two years in prison on the aggravated identity theft charge.

The details of Stahlman’s operation are particularly brazen. She didn’t just steal identities; she fabricated employment histories, using tax identification numbers of companies where she had no connection, and even invented dependents on the fraudulent returns to maximize her ill-gotten gains. The payments were funneled onto prepaid debit cards, which Stahlman then used for personal expenses. The Justice Department, alongside the IRS, has made tackling stolen identity refund fraud a top priority, charging over 880 defendants in the past year alone and resolving nearly 963,000 identity theft cases.

Attorney General Eric Holder emphasized the growing severity of the problem. “This is an increasingly urgent problem,” he said. “Its impact can be devastating to families that are counting on legitimate tax refunds that are diverted by identity theft. And especially in recent years, the Justice Department has seen the scale, scope, and execution of these fraud schemes grow significantly.” Kenneth Hines, Special Agent in Charge of IRS Criminal Investigation, added, “Identity theft is devastating for the victims… Protecting our tax system is important to us, but we are even more passionate about bringing to justice those crooks that violate innocent people by stealing their identities.”

This case serves as a stark warning: stealing identities and defrauding the government carries hefty consequences. Stahlman’s actions have landed her behind bars, and the federal government is sending a clear message that such crimes will not be tolerated. The investigation remains ongoing, and authorities are urging anyone who suspects they may have been a victim of identity theft to contact the IRS immediately.