News
WASHINGTON – The Internal Revenue Service and the Justice Department today announced the results of a massive national sweep cracking down on suspected identity theft perpetrators as part of a stepped-up effort against refund fraud and identity theft.
Working with the Justice Department's Tax Division and local U.S. Attorneys' offices, the nationwide effort targeted 105 people in 23 states. The coast-to-coast effort took place over the last week and included indictments, arrests and the execution of search warrants involving the potential theft of thousands of identities and taxpayer refunds. In all, 939 criminal charges are included in the 69 indictments and informations related to identity theft.
In addition, IRS auditors and investigators conducted extensive compliance visits to money service businesses in nine locations across the country in the past week. The approximately 150 visits occurred to help ensure these check-cashing facilities aren't facilitating refund fraud and identity theft.
“This unprecedented effort against identity theft sends a strong, unmistakable message to anyone considering participating in a refund fraud scheme this tax season,” said IRS Commissioner Doug Shulman. “We are aggressively pursuing cases across the nation with the Justice Department, and people will be going to jail. This is part of a much wider effort underway at the IRS to help protect taxpayers.”
“The Justice Department is working closely with the IRS to investigate, prosecute, and punish tax refund crimes committed through the theft of identities,” said Principal Deputy Assistant Attorney General John A. DiCicco of the Tax Division. “Now, more than ever, we must remain vigilant against the unauthorized use of identification information to defraud the U.S. government.”
The national effort is part of a comprehensive identity theft strategy the IRS has embarked on that is focused on preventing, detecting and resolving identity theft cases as soon as possible. In addition to the law-enforcement crackdown, the IRS has stepped up its internal reviews to spot false tax returns before tax refunds are issued as well as working to help victims of the identity theft refund schemes.
The law-enforcement sweep started last week across the country, reflecting investigative efforts stretching back months and even years.
Beyond the criminal actions, the IRS enforcement personnel conducted a special sweep last week and on Monday to visit 150 money services businesses to help make sure these businesses are not knowingly or unknowingly facilitating identity theft or refund fraud. The visits occurred in nine high-risk places identified by the IRS covering areas in and surrounding Atlanta, Birmingham, Ala., Chicago, Los Angeles, Miami, New York, Phoenix, Tampa and Washington, D.C.
In addition, the IRS has more than 250 check-cashing operations under audit across the country and will be looking for indicators of identity theft as part of the exam effort.
The information from these audits and compliance visits will be used to assist continuing IRS investigations into refund fraud and identity theft.
The IRS also is taking a number of additional steps this tax season to prevent identity theft and detect refund fraud before it occurs. These efforts includes designing new identity theft screening filters that will improve the IRS's ability to spot false returns before they are processed and before a refund is issued, as well as expanded efforts to place identity theft indicators on taxpayer accounts to track and manage identity theft incidents.
To help taxpayers, the IRS earlier this month created a new, special section on IRS.gov dedicated to identity theft matters, including YouTube videos, tips for taxpayers and a special guide to assistance. The information includes how to contact the IRS Identity Protection Specialized Unit and tips to protect against “phishing” schemes that can lead to identity theft.
Taxpayers looking for additional information can consult the Taxpayer Guide to Identity Theft <http://www.irs.gov/newsroom/article/0,,id=251501,00.html> or the IRS Identity Theft Protection page <http://www.irs.gov/privacy/article/0,,id=186436,00.html> on the IRS website.
LOCAL IRS CASE EXAMPLES
In the greater Southern California area, IRS-CI special agents are actively investigating those involved in alleged criminal violations of the Internal Revenue Laws and related Identity Fraud Offenses. United States District Court records reveal the following recent legal actions pertaining to identity fraud:
Riverside Woman Sentenced to 30 Months for Filing False Claims for Refunds with the
Internal Revenue Service and Identity Theft
Los Angeles – On January 13, 2011, Dora Argote, 39, of Riverside was sentenced to 30 months prison for her participation in a scheme to defraud the IRS in which she and others filed tax returns with the IRS that falsely claimed tax refunds using others' identity.
In total, Dora Argote's participation in the scheme caused a tax loss to the government of $839,866.87, which she was ordered to repay as a part of her sentence.
Moreno Valley Tax Preparer Sentenced to 42 Months in Prison for Filing False Tax Returns, Wire Fraud and Identity Theft
Los Angeles - On September 19, 2011, Willena Stargell, 39, owner of Liberty Bell Tax Service in Moreno Valley was sentenced to 42 months in prison after being convicted at trial of tax fraud, financial fraud, and identity theft. Stargell was also ordered to pay a total of $362,796.07 in restitution.
Stargell was previously convicted by a federal jury following a five day trial. The evidence at trial revealed that the fraudulent tax returns filed by Stargell sought nearly $600,000 in illegitimate tax refunds.
Former County Social Worker Sentenced to Nearly 40 Years in Prison for Identity Theft and Tax Scam
Los Angeles - On June 28, 2011, a former employee with the Los Angeles County Department of Social Services was sentenced to 46 months in prison for fraudulently filing Federal tax returns in the names of 197 different people that sought more than $2million in refunds.
Trang Van Dinh, 63, of El Monte, was also ordered to pay $667,034 in restitution to the IRS.
The 197 returns filed by Dinh sought refunds totaling $2,212,996. The IRS issued refunds totaling $1,156,374. When alerted to the fraudulent conduct, banks froze accounts, but Dinh succeeded in accessing $667,034.
Convicted Felon Admits Pleads Admits Possessing Firearm and Aggravated Identity Theft
Los Angeles- On July 25, 2011, Dwight Franklin Smith, 58, pleaded guilty to one count of aggravated identity theft.
According to court documents, Dwight Smith obtained and used personal identifying information, including names, social security numbers, and dates of birth, to defraud financial institutions. Smith's schemes included filing fraudulent mortgage loan applications, obtaining lines of credit and credit cards in the names of victims. Smith drained those funds and used the credit cards to make purchases without the victims' knowledge or consent.
At sentencing, scheduled for March 8, 2012, Smith faces a maximum sentence for all offenses of 12 years imprisonment.
Upland Man Sentenced to 30 Years in Prison for Using Social Security Numbers of Deceased Persons
Los Angeles –On September 21, 2011, Haroon Amin of Upland was sentenced to 30 months in prison for conspiracy to defraud the United States. U.S. District Judge Robert H. Whaley further ordered Amin to pay $258,594 in restitution to the U.S. Treasury. Amin was immediately remanded into custody.
In December 2008, Amin and Ather Ali of Diamond Bar, Calif., were indicted by a federal grand jury in Riverside, Calif., on charges of engaging in a scheme to file false returns with the IRS using the names and Social Security numbers of deceased individuals.
According to the indictment, in 2002 and 2003, Amin and Ali filed at least 250 fraudulent returns, falsely stating that these deceased individuals earned wages from which income tax was withheld. These false returns claimed more than $2 million in income tax refunds. Although the IRS rejected the bulk of these refund claims, a number of refund checks were issued and delivered to addresses controlled by Amin, Ali and their co-conspirators, including various mailboxes opened by Ali. Most of these refund checks then were delivered overseas to be deposited in bank accounts in Armenia and Pakistan.
Ali was previously sentenced on Dec. 17, 2010, and is serving a 37-month prison term.
Conspirator Pleads Guilty to Using Stolen Identities to Obtain Tax Refunds
Los Angeles - On January 9, 2012, Tiffani Hess, 25, of Los Angeles, pleaded guilty to filing a false claim for a tax refund with the IRS using her identity and the stolen identities of a victim in U.S. District Court.
According to the plea agreement, Hess admitted that she filed a false tax return in the name of an unknowing victim. The false tax return claimed a refund due of $63,244. In furtherance of the conspiracy, Hess directed the IRS to deposit the refund in a bank account in the victim's name, but controlled by Hess. Hess also admitted that she opened another bank account using another victim's name to receive fraudulently obtained tax refunds.
As part of the conspiracy, Hess admitted that she and her co-conspirators filed false tax returns seeking over $200,000 in refunds to which she and her co-conspirators were not entitled.
Sentencing is set for April 2, 2012.
Working with the Justice Department's Tax Division and local U.S. Attorneys' offices, the nationwide effort targeted 105 people in 23 states. The coast-to-coast effort took place over the last week and included indictments, arrests and the execution of search warrants involving the potential theft of thousands of identities and taxpayer refunds. In all, 939 criminal charges are included in the 69 indictments and informations related to identity theft.
In addition, IRS auditors and investigators conducted extensive compliance visits to money service businesses in nine locations across the country in the past week. The approximately 150 visits occurred to help ensure these check-cashing facilities aren't facilitating refund fraud and identity theft.
“This unprecedented effort against identity theft sends a strong, unmistakable message to anyone considering participating in a refund fraud scheme this tax season,” said IRS Commissioner Doug Shulman. “We are aggressively pursuing cases across the nation with the Justice Department, and people will be going to jail. This is part of a much wider effort underway at the IRS to help protect taxpayers.”
“The Justice Department is working closely with the IRS to investigate, prosecute, and punish tax refund crimes committed through the theft of identities,” said Principal Deputy Assistant Attorney General John A. DiCicco of the Tax Division. “Now, more than ever, we must remain vigilant against the unauthorized use of identification information to defraud the U.S. government.”
The national effort is part of a comprehensive identity theft strategy the IRS has embarked on that is focused on preventing, detecting and resolving identity theft cases as soon as possible. In addition to the law-enforcement crackdown, the IRS has stepped up its internal reviews to spot false tax returns before tax refunds are issued as well as working to help victims of the identity theft refund schemes.
The law-enforcement sweep started last week across the country, reflecting investigative efforts stretching back months and even years.
Beyond the criminal actions, the IRS enforcement personnel conducted a special sweep last week and on Monday to visit 150 money services businesses to help make sure these businesses are not knowingly or unknowingly facilitating identity theft or refund fraud. The visits occurred in nine high-risk places identified by the IRS covering areas in and surrounding Atlanta, Birmingham, Ala., Chicago, Los Angeles, Miami, New York, Phoenix, Tampa and Washington, D.C.
In addition, the IRS has more than 250 check-cashing operations under audit across the country and will be looking for indicators of identity theft as part of the exam effort.
The information from these audits and compliance visits will be used to assist continuing IRS investigations into refund fraud and identity theft.
The IRS also is taking a number of additional steps this tax season to prevent identity theft and detect refund fraud before it occurs. These efforts includes designing new identity theft screening filters that will improve the IRS's ability to spot false returns before they are processed and before a refund is issued, as well as expanded efforts to place identity theft indicators on taxpayer accounts to track and manage identity theft incidents.
To help taxpayers, the IRS earlier this month created a new, special section on IRS.gov dedicated to identity theft matters, including YouTube videos, tips for taxpayers and a special guide to assistance. The information includes how to contact the IRS Identity Protection Specialized Unit and tips to protect against “phishing” schemes that can lead to identity theft.
Taxpayers looking for additional information can consult the Taxpayer Guide to Identity Theft <http://www.irs.gov/newsroom/article/0,,id=251501,00.html> or the IRS Identity Theft Protection page <http://www.irs.gov/privacy/article/0,,id=186436,00.html> on the IRS website.
LOCAL IRS CASE EXAMPLES
In the greater Southern California area, IRS-CI special agents are actively investigating those involved in alleged criminal violations of the Internal Revenue Laws and related Identity Fraud Offenses. United States District Court records reveal the following recent legal actions pertaining to identity fraud:
Riverside Woman Sentenced to 30 Months for Filing False Claims for Refunds with the
Internal Revenue Service and Identity Theft
Los Angeles – On January 13, 2011, Dora Argote, 39, of Riverside was sentenced to 30 months prison for her participation in a scheme to defraud the IRS in which she and others filed tax returns with the IRS that falsely claimed tax refunds using others' identity.
In total, Dora Argote's participation in the scheme caused a tax loss to the government of $839,866.87, which she was ordered to repay as a part of her sentence.
Moreno Valley Tax Preparer Sentenced to 42 Months in Prison for Filing False Tax Returns, Wire Fraud and Identity Theft
Los Angeles - On September 19, 2011, Willena Stargell, 39, owner of Liberty Bell Tax Service in Moreno Valley was sentenced to 42 months in prison after being convicted at trial of tax fraud, financial fraud, and identity theft. Stargell was also ordered to pay a total of $362,796.07 in restitution.
Stargell was previously convicted by a federal jury following a five day trial. The evidence at trial revealed that the fraudulent tax returns filed by Stargell sought nearly $600,000 in illegitimate tax refunds.
Former County Social Worker Sentenced to Nearly 40 Years in Prison for Identity Theft and Tax Scam
Los Angeles - On June 28, 2011, a former employee with the Los Angeles County Department of Social Services was sentenced to 46 months in prison for fraudulently filing Federal tax returns in the names of 197 different people that sought more than $2million in refunds.
Trang Van Dinh, 63, of El Monte, was also ordered to pay $667,034 in restitution to the IRS.
The 197 returns filed by Dinh sought refunds totaling $2,212,996. The IRS issued refunds totaling $1,156,374. When alerted to the fraudulent conduct, banks froze accounts, but Dinh succeeded in accessing $667,034.
Convicted Felon Admits Pleads Admits Possessing Firearm and Aggravated Identity Theft
Los Angeles- On July 25, 2011, Dwight Franklin Smith, 58, pleaded guilty to one count of aggravated identity theft.
According to court documents, Dwight Smith obtained and used personal identifying information, including names, social security numbers, and dates of birth, to defraud financial institutions. Smith's schemes included filing fraudulent mortgage loan applications, obtaining lines of credit and credit cards in the names of victims. Smith drained those funds and used the credit cards to make purchases without the victims' knowledge or consent.
At sentencing, scheduled for March 8, 2012, Smith faces a maximum sentence for all offenses of 12 years imprisonment.
Upland Man Sentenced to 30 Years in Prison for Using Social Security Numbers of Deceased Persons
Los Angeles –On September 21, 2011, Haroon Amin of Upland was sentenced to 30 months in prison for conspiracy to defraud the United States. U.S. District Judge Robert H. Whaley further ordered Amin to pay $258,594 in restitution to the U.S. Treasury. Amin was immediately remanded into custody.
In December 2008, Amin and Ather Ali of Diamond Bar, Calif., were indicted by a federal grand jury in Riverside, Calif., on charges of engaging in a scheme to file false returns with the IRS using the names and Social Security numbers of deceased individuals.
According to the indictment, in 2002 and 2003, Amin and Ali filed at least 250 fraudulent returns, falsely stating that these deceased individuals earned wages from which income tax was withheld. These false returns claimed more than $2 million in income tax refunds. Although the IRS rejected the bulk of these refund claims, a number of refund checks were issued and delivered to addresses controlled by Amin, Ali and their co-conspirators, including various mailboxes opened by Ali. Most of these refund checks then were delivered overseas to be deposited in bank accounts in Armenia and Pakistan.
Ali was previously sentenced on Dec. 17, 2010, and is serving a 37-month prison term.
Conspirator Pleads Guilty to Using Stolen Identities to Obtain Tax Refunds
Los Angeles - On January 9, 2012, Tiffani Hess, 25, of Los Angeles, pleaded guilty to filing a false claim for a tax refund with the IRS using her identity and the stolen identities of a victim in U.S. District Court.
According to the plea agreement, Hess admitted that she filed a false tax return in the name of an unknowing victim. The false tax return claimed a refund due of $63,244. In furtherance of the conspiracy, Hess directed the IRS to deposit the refund in a bank account in the victim's name, but controlled by Hess. Hess also admitted that she opened another bank account using another victim's name to receive fraudulently obtained tax refunds.
As part of the conspiracy, Hess admitted that she and her co-conspirators filed false tax returns seeking over $200,000 in refunds to which she and her co-conspirators were not entitled.
Sentencing is set for April 2, 2012.
