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
 

Already a member? log in here.

Editor's Choice

Upcoming CPE Webinars

Nov 24This webcast presents basic principles of revenue recognition, including new ASU 2014-09 for the contract method. Also, CPAs in industries who want a refresher on revenue accounting standards will benefit.
Dec 3The materials discuss the concepts and principles in the AICPA’s new special purpose framework.
Dec 9A key component to improving your firm’s workflow efficiency while enhancing your profitability at the same time is how you leverage emerging technologies.
Dec 9Kristen Rampe will cover how to diffuse the tension in challenging situations in this one-hour webinar.