In a brazen scheme that spanned three years, two men from Alabama and Georgia have been sentenced to prison for their roles in filing over 1,200 false tax returns using stolen identities. Ernest James Simmons Jr., 29, of Phenix City, Alabama, and Calvin J. Perry, 28, of Atlanta, Georgia, were handed down prison sentences of 24 months and 32 months, respectively, for their involvement in the stolen identity tax refund fraud scheme.
According to court documents and evidence presented at the sentencing hearing, Simmons and Perry conspired with Perry’s mother, Pamela Ann Smith, to run the large-scale scheme from Smith’s tax return preparation business, Jaycal Tax Service, in Phenix City. Smith recruited her son Perry and his friend Simmons to participate in the scheme, which involved filing false federal income tax returns using the stolen personal identification information of actual individuals.
Simmons was directly connected to false returns claiming more than $700,000 in fraudulent refunds, while Perry was directly connected to false returns claiming over $1 million in fraudulent refunds. U.S. Treasury checks were mailed to physical addresses and post office boxes and then deposited into multiple bank accounts, all under the control of Simmons, Perry, and Smith. Perry personally obtained more than $300,000 and Simmons personally obtained more than $150,000 from the scheme.
In addition to the prison term, U.S. District Judge Myron H. Thompson ordered Perry and Simmons each to serve three years of supervised release. Perry was also ordered to pay restitution in the amount of $308,152, while Simmons was ordered to pay restitution in the amount of $167,194. In February, Smith was sentenced to serve 51 months in prison after pleading guilty for her role in the scheme.
The investigation into the scheme was led by special agents of Internal Revenue Service-Criminal Investigation, with assistance from Trial Attorneys Gregory P. Bailey, Michael C. Boteler, and Robert J. Boudreau of the Tax Division, and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama.
This case highlights the importance of vigilance in protecting personal identification information and the severe consequences that can result from engaging in large-scale tax refund schemes. As one of the largest tax refund schemes in recent history, this case serves as a reminder of the need for continued cooperation between law enforcement agencies and the public in preventing and investigating these types of crimes.
Related Federal Cases
- Phenix City Duo Indicted for $2.5M Tax Fraud Scheme · Alabama
- Harold Coley Indicted in $924K Identity Tax Fraud Scheme · Alabama
- Regina Renee Ellis Gets 46 Months for Tax Fraud Scheme · Alabama
- Tax Preparers Indicted for Stolen Identity Refund Fraud · Texas
- Tax Refund Scammers Sentenced to Prison · Alabama
Key Facts
- State: Alabama
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News