Seven-Year Sentence for Tax Scam Ringleader

Derma Miller, a 34-year-old woman from Sanford, Florida, has been sentenced to seven years in federal prison for her role in a brazen tax scam that saw her and her mother steal over $493,000 in tax refunds from the Treasury Department.

The scheme, which lasted for two years, involved the Millers using stolen personal identity information to file false federal income tax returns. They then directed the Internal Revenue Service to electronically deposit the refunds into a bank account controlled by Miller, which they would withdraw in cash and use for their own benefit and the benefit of others.

The extent of the scam’s reach was staggering, with the Millers filing approximately 226 fraudulent tax returns and obtaining $493,697 in fraudulent tax refunds from the Treasury Department. The scheme targeted individuals who were physically and mentally disabled, exploiting their vulnerability for personal gain.

Miller’s mother, Virginia Miller, was previously sentenced to five years and one month in federal prison for her role in the offense. The sentence was a consequence of her efforts in preparing and filing the fraudulent returns using the stolen identity information.

The case was investigated by the Department of the Treasury and the Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Karen L. Gable and Nathan W. Hill prosecuted the case.

Miller’s seven-year sentence serves as a warning to those who engage in similar schemes, highlighting the severity of the consequences for stealing from the government and exploiting vulnerable individuals. The case also underscores the importance of vigilance in protecting personal identity information and preventing such scams from occurring in the first place.

In addition to her prison sentence, Miller was also ordered to pay a money judgment of $493,697, which represents the proceeds of her criminal conduct.