Virginia Man Pleads Guilty to Identity Theft and Tax Fraud Scheme

WASHINGTON – A Virginia man has pleaded guilty to his involvement in a massive identity theft and tax fraud scheme that stole over $1.5 million from the IRS.

Bradley King, 35, of Fredericksburg, Va., pleaded guilty to one count of conspiracy to defraud the United States with respect to claims, one count of theft of public money, and one count of aiding and abetting in fraud and related activity in connection with identification documents.

According to court documents, King participated in a scheme that involved an extensive network of over 130 people, many of whom were receiving public assistance. The refunds were sought for tax years 2005 through 2013, often in the names of people whose identities had been stolen, including the elderly, residents of assisted living facilities, drug addicts, and incarcerated prisoners.

The scheme, which began in 2008 and continued through July 2015, involved King permitting co-conspirators to use his name, Social Security number, and residential address for the creation and submission of fraudulent income tax returns. He also recruited others to provide him with means of identification for use in preparing and filing fraudulent returns, and split the proceeds of the fraudulently obtained U.S. Treasury checks with his co-conspirators.

King is among approximately 19 participants in this scheme who have pleaded guilty to charges in the U.S. District Court for the District of Columbia. He agreed to pay $493,436 in restitution to the IRS as part of the plea agreement, and is subject to a forfeiture money judgment in the amount of $5,400.

King is to be sentenced on May 18, 2016, by U.S. District Judge Ellen S. Huvelle. The charges carry statutory maximum prison terms of 10 years, 10 years, and 15 years, respectively, as well as potential financial penalties.

The scheme involved the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $42 million. King was responsible for the filing of approximately 444 fraudulent returns that sought more than $1.5 million, leading to a total actual loss of approximately $493,436 to the U.S. Treasury.