Wheeler Gets 17.5 Years for Tax Fraud Scheme

MONTGOMERY, AL – John Irving Wheeler, 31, of Montgomery, Alabama, is trading his freedom for 210 months behind bars after a federal judge slammed him with a hefty sentence for his role in a brazen identity theft and state income tax fraud scheme. The sentencing, handed down October 31, 2013, concludes a case that exposed a network preying on stolen identities to rake in illicit refunds from multiple states.

According to court documents, Wheeler and his accomplices operated between February 2008 and at least November 2009, systematically pilfering the personal information of unsuspecting victims – names, dates of birth, and, crucially, Social Security numbers. This stolen data became the engine of their fraud, used to file bogus state income tax returns electronically across the country. The scheme specifically targeted Georgia and Michigan, funneling over $1,060,732 in fraudulent refunds directly into the pockets of Wheeler and his co-conspirators.

The feds didn’t just rely on financial records. When Special Agents with the United States Secret Service and the Alabama Alcohol Beverage Control Board executed a search warrant at Wheeler’s Montgomery residence, they found more than 300 stolen identities. The scene was almost comical: Wheeler was caught in the act of attempting to flush incriminating paperwork down the toilet as the agents arrived. A desperate, and ultimately futile, attempt to destroy the evidence.

U.S. Attorney for the Middle District of Alabama, George L. Beck, Jr., announced the sentence, emphasizing the severity of the crime. Wheeler pleaded guilty on April 1, 2013, to one count of conspiracy to commit wire fraud and mail fraud. However, the plea didn’t spare him from the significant consequences of his actions. In addition to the 17.5-year prison term, Wheeler is now on the hook for a staggering $1 million in restitution, payable to the states of Georgia and Michigan.

Bank records meticulously traced the flow of fraudulent funds, while information obtained directly from the Georgia Department of Revenue and the Michigan Department of Treasury solidified the case against Wheeler. Assistant U.S. Attorney Todd Brown skillfully prosecuted the case, bringing the perpetrators to justice and sending a clear message that identity theft and tax fraud will not be tolerated.

The investigation underscores the ongoing threat of identity theft-fueled financial crimes. While Wheeler is now facing the consequences, authorities warn that similar schemes continue to operate, preying on vulnerable individuals. Anyone suspecting identity theft should immediately report it to the Federal Trade Commission and local law enforcement.

PRESS CONTACT: Clark Morris
usaalm.press@usdoj.gov
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