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Issue Number: IR-2015-37Inside This Issue
IRS’s Top
Ten Identity Theft Prosecutions; Part of Ongoing Efforts to Protect Taxpayers,
Prevent Refund Fraud
IRS YouTube Videos
“Identity theft is a crime that carries significant consequences, and these cases send a warning to criminals,” said Richard Weber, Chief, IRS-Criminal Investigation. “Our top 10 cases represent the seriousness of these crimes and the magnitude of the consequences that will be faced by those who victimize honest taxpayers and steal from hard-working Americans.” Learn more about identity theft and what the IRS is doing to combat it at IRS.gov/identitytheft. You can also read IRS Fact Sheet 2015-1, IRS Combats Identity Theft and Refund Fraud on Many Fronts, and IRS Fact Sheet 2015-2, Identity Theft Information for Taxpayers and Victims. The summary of the following 10 identity theft cases is based on public information available in court records: Top Ten Identity Theft Cases
1. Couple Sentenced for False Tax Refund
Conspiracy - On April 24, 2014, in Charlotte, North Carolina, Senita
Birt Dill and Ronald Jeremy Knowles, were sentenced to 324 and 70 months in
prison, respectively. Both were also ordered to pay $3,978,211 in restitution to
the IRS. Dill and Knowles pleaded guilty to false claims of conspiracy and
access device fraud. Dill also pleaded guilty to aggravated identity theft. Dill
and Knowles used fraudulently obtained personal identification information
(including names, dates of birth and social security numbers) to file false tax
returns claiming tax refunds. Dill and Knowles used neighboring addresses to
fill out the fraudulent tax returns and checked the homes’ mailboxes frequently
to retrieve the fraudulent refund checks upon delivery. The defendants also used
addresses in Greenville and Greer, S.C., which belonged to Knowles’ businesses.
Dill and Knowles filed over 1,000 false tax returns using the fraudulently
obtained personal identification information.
2. Georgia Man Sentenced for Tax Fraud and
Identity Theft - On Aug. 25, 2014, in Atlanta, Georgia, Mauricio Warner
was sentenced to 240 months, three years of supervised release, ordered to pay
$5,041,869 in restitution and forfeiture of bank accounts that contained
$4,185,455. Warner was convicted on wire fraud, aggravated identity theft,
filing false claims, and money laundering. Warner filed over 5,000 false tax
returns using the names and social security numbers of unsuspecting victims that
were told they could submit an application for an “Obama stimulus payment” or
“Free Government Money” by providing their names and social security numbers. In
addition to word-of-mouth marketing, Warner used toll-free telephone numbers to
collect victims’ personal identifying information.
3. Dallas Men Sentenced for Role in
Massive Stolen Identity Refund Fraud Scheme - On May 15, 2014, in
Dallas Texas, Ogiesoba City Osula was sentenced to 210 months in prison and
ordered to pay $15.9 million in restitution. Osula was convicted on conspiracy
to commit wire fraud, mail fraud and bank fraud; presenting fraudulent claims
upon the U.S.; access device fraud and aiding and abetting; and aggravated
identity theft and aiding and abetting. Previously sentenced were co-defendants:
George Ojonugwa, sentenced to 174 months and ordered to pay $15,979,187 in
restitution; Eseos Igiebor, sentenced to 96 months and ordered to pay $9,660,658
in restitution; Ebenezer Legbedion, sentenced to 40 months and ordered to pay
more than $1 million in restitution; and Evelyn Nyaboke Haley sentenced to 60
months and ordered to pay approximately $5.7 million in restitution. The
defendants conspired to defraud the United States by using stolen identity
information and false information to create and electronically file false tax
returns to claim refunds. On Nov. 8, 2011, police in a Cincinnati suburb
questioned Osula and Ojonugwa, who were in a parked car. When the vehicle was
searched, police found more than $300,000 in cash and money orders and numerous
debit cards. During that incident, while Osula was in a police car and waiting
to be questioned, he ate a debit card.
4. Floridian Sentenced in Identity Theft
Tax Fraud and Social Security Schemes - On Sept. 17, 2014, in Miami,
Florida, Kevin Cimeus, was sentenced to 156 months in prison and three years of
supervised release. Cimeus was convicted of conspiracy to steal government
property or money, theft of government money or property, access device theft,
and aggravated identity theft. Federal agents found over 2,400 social security
numbers and names of real people stored on thumb drives, laptop computers, iPad,
and Cimeus’ email account at Cimeus’ residence. Cimeus recruited Miami Dade
College students to allow him to use their bank accounts to receive fraudulently
obtained tax refunds. Cimeus also used his own bank accounts to receive
fraudulently obtained tax refunds. Cimeus filed at least one thousand tax
returns from two IP addresses. He also used the two IP addresses to access the
Social Security Administration’s web site and create online profiles for social
security recipients in order to re-route the victims’ social security payments
to other accounts.
5. Ohio Man Sentenced for Participation in
$3.5 Million Identity Theft Scam - On Aug. 21, 2014, in Columbus, Ohio,
Roma L. Sims was sentenced to 100 months in prison, three years of supervised
release, and ordered to pay $3,517,534 in restitution to the IRS. Sims pleaded
guilty to aggravated identity theft, wire fraud and conspiring to commit
identity theft in a scheme to defraud the IRS. Sims advertised through various
means in order to collect personal identification information from low-income or
unemployed single parents with children. After tricking the innocent individuals
who responded into providing their personal identification information, Sims
prepared and filed false income tax returns in their names. Sims also obtained
additional personal identification information by conspiring with Robert
Earthman, who had access to the Kentucky child support enforcement database,
which contained personal identification information of single parents with
children who were recipients of child support. In total, Sims was responsible
for the preparation and filing of approximately 977 income tax returns for the
2010 - 2012 tax years. Samantha C. Towns was sentenced to three years of
probation and ordered to pay $1,312,513 in restitution to the IRS. Robert S.
Earthman was sentenced to 24 months in prison, three years of supervised release
and was ordered to pay $1,312,513 in restitution to the IRS.
6. New York Tax Preparer Sentenced for
Filing False Tax Returns and Aggravated Identity Theft - On April 24,
2014, Mahamadou Daffe, a tax preparer in Queens, N.Y., was sentenced to 102
months in prison and three years of supervised release. Daffe was found guilty
of conspiracy to steal government funds, theft of government funds, conspiracy
to file false claims, wire fraud, and aggravated identity theft in connection
with the preparation and filing of nearly 1,000 false income tax returns
submitted online using stolen identities.
7. Alabama Man Sentenced for Scheme Using
Prisoner Identities to Obtain False Tax Refunds - On April 29, 2014, in
Montgomery, Ala., Harvey James was sentenced to 110 months in prison, three
years of supervised release and ordered to pay $618,042 in restitution. James
pleaded guilty to mail fraud and aggravated identity theft. James and his
sister, Jacqueline Slaton, obtained stolen identities from various individuals,
including one person who had access to inmate information from the Alabama
Department of Corrections. James and others used those inmate names to file
federal and state tax returns that claimed fraudulent refunds. Vernon Harrison,
a U.S. Postal Service employee, provided James with addresses from his postal
route, which were used as mailing addresses for the fraudulent prepaid debit
cards and state tax refund checks. In total, James filed over 1,000 federal and
state income tax returns that claimed over $1 million in fraudulent tax refunds.
Slaton was sentenced to 70 months in prison and Harrison was sentenced to 111
months in prison.
8. Several Sentenced in $19 Million Tax
Fraud Conspiracy - On December 30, 2013, in Anchorage, Alaska, Joel
Santana-Pierna and Abel Santana-Pierna, citizens of the Dominican Republic
residing in Alaska, were sentenced to 135 months and 72 months in prison,
respectively. In addition, they were ordered to pay $559,755 in restitution to
the IRS and agreed to forfeit approximately $130,000 obtained as part of their
drug trafficking activities. The brothers pleaded guilty to conspiracy to
distribute cocaine and conspiracy to defraud the government. The Santana-Pierna
brothers conspired to use more than 3,000 stolen Puerto Rican identities to file
false income tax returns and obtain large income tax refunds to which they were
not entitled. In total, eleven individuals have been sentenced in this scheme
with sentencings ranging from probation to 135 months in prison.
9. Woman Sentenced for Tax Fraud and
Aggravated Identity Theft - On Oct. 22, 2014, in Orlando, Florida,
Tanya Fox was sentenced to 240 months in prison for conspiracy to defraud the
federal government, wire fraud, theft of government property, and aggravated
identity theft. Fox was also ordered to pay a money judgment in the amount of
$4,055,735. On July 24, 2014, Fox was found guilty by a jury of one count of
conspiracy, five counts of wire fraud, ten counts of theft of government
property, and ten counts of aggravated identity theft. According to court
documents, Fox orchestrated a scheme to file fraudulent tax returns using
identities that had been stolen from a variety of sources. Fox directed other
individuals to open business bank accounts in the name of a fraudulent tax
preparation business and to have the tax refunds deposited into those accounts.
She then worked with those individuals to withdraw the funds and she spent the
money on several luxury and other vehicles, cosmetic surgery and to open a
restaurant in the Orlando area. Four others have been sentenced for providing
approximately 2,400 names from the Orange County Health Department to Fox, with
sentencing’s ranging from five years to two years and six months in
prison.
10. Bogus Charity Operator Sentenced for
ID Theft and Wire Fraud Scheme - On June 12, 2014, in Columbus, Ohio,
Jonathan Webster was sentenced to 108 months in prison, three years of
supervised release and ordered to pay $1,457,936 in restitution. Webster pleaded
guilty to wire fraud and aggravated identity theft. Webster purchased
advertising in newspapers representing himself as a charity seeking to provide
financial assistance to others. Webster set up an online website where
individuals responding to the advertisements could provide their names and
social security numbers. Webster and a co-conspirator electronically filed more
than 500 false income tax returns using the names and social security numbers of
the individuals.
Statistical InformationIn fiscal year 2014, the IRS initiated 1,063 identity theft related investigations. Criminal Investigation enforcement efforts resulted in 748 sentencings as compared to 438 in FY 2013, an increase of 75 percent. The incarceration rate rose 7.1 percent to 87.7 percent. The courts also imposed more jail time in 2014, with the average months of those being sentenced rising to 43 months as compared to 38 months in FY 2013. The longest sentence was 27 years. Enforcement Efforts During FY 2014, Criminal Investigation dedicated significant time and resources to bringing down identity thieves attempting to defraud the federal government. The nationwide Law Enforcement Assistance Program provides for the disclosure of federal tax return information associated with the accounts of known and suspected victims of identity theft with the express written consent of those victims. There are now more than 755 state/local law enforcement agencies from 47 states participating. Since the start of the program, more than 6,776 requests were received from state and local law enforcement agencies. The Identity Theft Clearinghouse (ITC) continues to develop and refer identity theft refund fraud schemes to CI Field Offices for investigation. Since its inception in FY 2012, it has received over 7,600 individual identity theft leads. These leads involved approximately 1.47 million returns with over $6.8 billion in refunds claimed. CI continues to be the lead agency that investigates identity theft and is actively involved in more than 78 multi-regional task forces or working groups including state, local and federal law enforcement agencies solely focusing on identity theft. CI has one of the highest conviction rates in all of federal law enforcement -- at 93.4% -- and is the only federal law enforcement agency with jurisdiction over federal tax crimes. CI is routinely called upon to be the lead financial investigative agency on a wide variety of financial crimes including international tax evasion, identity theft and transnational organized crime. Back to Top |
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