Multimillion-Dollar Stolen Identity Refund Scheme

Three defendants involved in a stolen identity refund fraud scheme were sentenced September 19 in the Middle District of Alabama, the Justice Department and the IRS announced.

Chiquanta Davis received a prison term of sixty-six months, Terrence Davis was sentenced to eighteen months in jail, and Laurekshia Blakely received a six-month prison sentence. All three were also sentenced to three years supervised release.
 
In May 2012, the three defendants had pleaded guilty to various charges in a superseding indictment: Chiquanta Davis pleaded guilty to conspiracy to file false claims, theft of public funds, and aggravated identity theft. Terrence Davis and Blakely each pleaded guilty to one count of theft of public funds.
 
According to court documents, Chiquanta Davis operated a sham tax business in 2010 called It's Tax Time out of her home. Davis opened a bank account in the name of It's Tax Time and directed a total of $1,458,600 in fraudulent refunds to that bank account. Although the IRS intercepted and stopped many of the tax refunds, Davis still received a substantial amount into the bank account. Davis used the funds, among other things, to purchase a Cadillac Escalade. As part of her plea agreement, Davis agreed to forfeit the Cadillac Escalade.
 
Court records also establish that in 2011, Chiquanta Davis assisted with the filing of false tax using stolen identities. Between January and June of 2011, 192 false returns requesting $769,223 in refunds were filed from her home. These refunds were directed to various bank accounts, including bank accounts controlled by her, her husband Terrence Davis, and Laurekshia Blakely. Fraudulent refunds totaling $199,959 from fifty-four false tax returns were directed to Terrence Davis's bank accounts. Fraudulent refunds totaling $24,314 from five false tax returns were directed to Laurekshia Blakely's accounts.
 
Source: US Department of Justice Press Release
 

You may like these other stories...

IRS must take oath on Lerner emails: judgeMackenzie Weinger of Politico reported on Thursday that a federal judge ordered the IRS to explain under oath how it lost emails connected to Lois Lerner, the ex-IRS official at the...
The Republican-controlled House of Representatives passed a bill on Friday morning that would permanently extend the bonus depreciation tax break for businesses.The measure, HR 4718, which was crafted by Representative Pat...
The Republican-led House of Representatives is expected to pass a bill this week that would permanently extend the bonus depreciation tax break. But don’t expect President Obama to sign it.The Obama administration said...

Upcoming CPE Webinars

Jul 16
Hand off work to others with finesse and success. Kristen Rampe, CPA will share how to ensure delegated work is properly handled from start to finish in this content-rich one hour webinar.
Jul 17
This webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.
Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.