Two federal grand jury indictments unsealed in Panama City, Florida, have revealed a brazen tax fraud scheme that left the U.S. Treasury worse off by over $540,000. According to court documents, five individuals, including two inmates, used stolen personal identifying information to file false federal income tax returns, claiming refunds they knew they weren’t entitled to.
The scheme, allegedly masterminded by Versiah M. Taylor, 32, of Panama City, and Tracy L. Collier, 47, an inmate at the Florida Department of Corrections’ Lake Butler Reception & Medical Center, involved the submission of fabricated tax returns to the Internal Revenue Service (IRS). The false returns, which included made-up wages, employer names, and financial institution information, resulted in the IRS paying out over $503,273 in fraudulent refunds.
Collier, while incarcerated at Okaloosa Correctional Institution, allegedly obtained the names, dates of birth, and social security numbers of various inmates, often without their knowledge or authorization. Taylor then used this information to file false tax returns, causing the IRS to pay out refunds onto prepaid debit cards purchased in the Bay County area or mailed by financial institutions to locations throughout the Bay County area.
The second indictment charges Anthony Q. Atkinson, 31, Anthony L. Smith, Jr., 25, and John Jerome Fagin, 30, all of the greater Panama City area. Atkinson, Smith, and Fagin are accused of conspiring to file fraudulent federal income tax returns with the IRS, claiming refunds of more than $37,526. Atkinson allegedly used the stolen personal identifying information provided by Smith to file the false tax returns, while Fagin provided his own information and the addresses of other individuals to facilitate the scheme.
The indictment alleges that the defendants caused the United States Treasury to pay out fraudulent income tax refunds by loading refunds onto prepaid debit cards purchased in the Bay County area or mailed by financial institutions to locations throughout the Bay County area.
If convicted, the defendants face up to 20 years in prison, a fine of up to $250,000, up to three years of supervised release, restitution, criminal forfeiture, and a $100 special monetary assessment on each count of conviction. Each count of aggravated identity theft carries a potential minimum mandatory sentence of two years in prison, which must be served consecutively to any other sentence imposed.
The investigation was conducted by agents of IRS Criminal Investigation, and the case is being prosecuted by Assistant United States Attorney Kathryn Ri. The U.S. Attorney’s Office for the Northern District of Florida has vowed to continue investigating and prosecuting those who attempt to defraud the U.S. Treasury through tax fraud schemes.
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Key Facts
- State: Florida
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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