FOR IMMEDIATE RELEASE	CONTACT: Lauren Horwood
January 23, 2012	PHONE: (916) 554-2706
www.usdoj.gov/usao/cae	usacae.edcapress@usdoj.gov
Docket #:  2:12-mj-018-DAD

SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner announced that Nadiyah Muhammad Woods, 33; Nakia Renee Vaughn, 26; and Tomisha Lee McKinnie, 24, all of Sacramento, were arrested today for felony criminal offenses related to the filing of false tax returns.

This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation, the Department of Treasury, Office of the Inspector General for Tax Administration, and the United States Postal Inspection Service, with the cooperation of the Sacramento Police Department and the Sacramento County Sheriff's Office. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.

“As federal prosecutors, one of our important responsibilities is to track down and prosecute those who defraud the federal government,” said U.S. Attorney Wagner. “Through this case and others like it, we will continue to work together with the IRS to protect taxpayers’ dollars.”

“The IRS is aggressively pursuing those who steal others’ identities in order to file false returns,” said Steven Miller, IRS Deputy Commissioner for Services and Enforcement. “Our cooperative work with the U.S. Attorney’s Office will help protect taxpayers in Sacramento from being victimized by identity theft. The IRS is taking additional steps this tax season to further prevent, detect and resolve identity theft cases as soon as possible.”

According to court documents, Woods, Vaughn, and McKinnie are charged in a conspiracy to defraud the United States through the filing of false tax returns using TurboTax, an income tax preparation software and filing service. The women are charged with executing a mail fraud scheme to obtain Green Dot debit cards, a service offered through the TurboTax software, loaded with the tax return money of taxpayer victims. In addition to the conspiracy, Woods is charged with 15 counts of filing false tax returns, 20 counts of mail fraud, and eight counts of aggravated identity theft. Vaughn is charged in five counts of filing false tax returns, 15 counts of mail fraud, and one count of aggravated identity theft.

The alleged fraudulent tax return claims filed by Woods, Vaughn, and McKinnie amount to more than $1,366,427, with an actual paid IRS loss of approximately $962,079. The scheme involved over 280 false tax returns and numerous victim taxpayers.

Woods and Vaughn made initial appearances today on the complaint before U.S. Magistrate Judge Dale A. Drozd. Both defendants were on probation for unrelated state crimes during the period the alleged conspiracy and mail fraud scheme operated. Vaughn was denied bail and remanded into federal custody. Since Woods was also wanted on a California state warrant for unrelated state charges, she was released into state custody pending further federal court bail proceedings. Both defendants are scheduled to appear in U.S. Magistrate Court on Friday, February 24, 2012 at 2:00 p.m. for a preliminary examination hearing. McKinnie was arrested in the late afternoon and will make her initial appearance Tuesday at 2:00 p.m. on the complaint before Judge Drozd.

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