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Western Slope man pleads guilty to defrauding the IRS and for possession of a fiream

FOR IMMEDIATE RELEASE
March 20, 2014

 

DENVER –Michael L. Roy, age 50, of Clifton, Colorado, pled guilty before U.S. District Court Judge Raymond P. Moore on March 17, 2014, to conspiracy to defraud the United States and being a felon in possession of a firearm, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced.  Roy, who is free on a bond, is scheduled to be sentenced by Judge Moore on June 16, 2014.  Roy waived his right to be indicted by a federal grand jury and was charged by an Information on January 28, 2014.  On September 19, 2013, Special Agents with IRS Criminal Investigation executed a search warrant on Roy’s home in Clifton, Colorado.

According to the facts contained in the Information as well as the stipulated facts contained in the plea agreement, in July 2013, the United States Postal Service intercepted eleven envelopes containing U.S. Treasury checks (IRS refund checks) and addressed to the home address of Michael and Kandiann Roy in Clifton, CO.  Each of the envelopes were addressed to a different individual, and each check had a processing date of July 2013.  Postal employees had also noticed Roy received letters from individuals within the Arizona State prison system. The mail carrier found a typed list with eleven names taped inside Roy’s mail box. The list appeared to serve as notification that the owner of the box would be receiving mail for these individuals.

IRS records showed that the list included eleven names for individuals who purported to file IRS Forms 1040EZ , U.S. Individual Income Tax Return, using Roy’s address.  A total of 30 IRS Form 1040EZ returns, submitted for the 2012 tax year, were filed using either Roy’s current or former home address.  All of the returns requested tax refunds.  Twenty-six of the returns each list an identical income of $37,429, withholdings of $12,976 and refund amounts of $9,260 and were filed by mail; the refunds of eight of those returns were deposited into Roy’s bank account.   The loss to the government to date is calculated at $65,263. 

Twenty of the returns filed using one of the Roy's addresses purported to be from taxpayers who are incarcerated prisoners. Eighteen of these prisoners are incarcerated in the Arizona State prison, located in Eyman, Arizona. Roy, previously known as Michael Demes, was convicted in Arizona of the felonies of robbery and aggravated assault and incarcerated under that name in the Arizona prison system beginning in 1999. He was sentenced to a seven-year prison term.

During the search warrant, IRS Special Agents found documentary evidence that Roy had filed the bogus tax returns.  They also found Moneygram receipts and letters to and from an inmate in the Arizona State prison, which included details of the conspiracy to file false income tax returns using the identity of other inmates. In addition, agents found a firearm, a Hi-Point .380 caliber handgun.

Conspiracy to defraud the United States and felon in possession of a firearm, both carry a penalty of not more than 10 years in federal prison, and a fine of up to $250,000, per count.

This case was investigated by IRS-Criminal Investigation, and the United States Postal Inspection Service.   The case is being prosecuted by Assistant U.S. Attorney Michelle M. Heldmyer.

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