Two Sentenced in Tax Refund Scheme

TALLAHASSEE, FLORIDA – Dorothy Jean Bailey, 52, and Phillip Walker III, 24, of Tampa, Florida, were sentenced to 110 months and 48 months in prison respectively today for conspiracy, wire fraud, theft of government funds, and aggravated identity theft in connection with the filing of false federal income tax returns.  They were also ordered to pay $475,402.01 in restitution.   Bailey and Walker were the last of five defendants to be sentenced in the case.  The sentences were announced by Pamela C. Marsh, U.S. Attorney for the Northern District of Florida.

During their guilty pleas in November and December 2014, the defendants admitted that, between 2011 and 2014, they conspired with co-defendants Darren Christopher Royal, 22, Cedric William Page, 25, and Gabriela Gloria Huerta, 23, each of Tallahassee, to file approximately 335 fraudulent federal income tax returns seeking more than $3.4 million in tax refunds.  To prepare these returns, the conspirators used personal identification information (PII) stolen from approximately 662 individuals.  The group obtained the PII from criminal court records in Texas, from tenant records maintained by apartment complexes in Tallahassee, and from deceased victims.  Bailey, Walker, and Royal also filed fraudulent returns in their own names.

The case was investigated by the Internal Revenue Service-Criminal Investigation and the Leon County Sheriff’s Office, whose joint investigation led to the charges in this case.  It was prosecuted by Assistant U.S. Attorney Jason Coody.

The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General.  The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States.  To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website.  For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, amy.alexander@usdoj.gov