United States Attorney's Office District of Connecticut
Press Release

TWO NEW YORK MEN SENTENCED TO FEDERAL PRISON FOR TAX FRAUD, IDENTITY THEFT

Nora R. Dannehy, Acting United States Attorney for the District of Connecticut, announced that two New York men were sentenced today in Hartford federal court for participating in a tax fraud and identity theft scheme.

HAMILTON DESCHAMPS, 30, of the Bronx, New York, and his brother, OSIRIS DESCHAMPS, 33, of Manhattan, were each sentenced by United States District Judge Christopher F. Droney in Hartford to 18 months’ imprisonment, two years of supervised release, and restitution.  The brothers pleaded guilty to various federal charges on February 3, 2009.

According to documents filed with the Court and statements made in court, from December 2006 to April 2008, HAMILTON DESCHAMPS, OSIRIS DESCHAMPS and others prepared and filed false tax returns during the 2007 and 2008 tax seasons with the IRS that bore the names and corresponding social security numbers of residents of Puerto Rico.  The defendants used the identities of Puerto Rico residents because residents of Puerto Rico are not obligated to file federal income tax returns as long as all of their income is derived from Puerto Rican sources.  Thus, the false tax returns filed in the course of the scheme were less likely to be duplicated by legitimate tax returns filed by Puerto Rican residents.  As part of the conspiracy, HAMILTON DESCHAMPS, OSIRIS DESCHAMPS and others also prepared and filed false Forms W-2 with the tax returns.  The companies listed on the fraudulent Forms W-2 did not employ the purported taxpayers, did not pay the wages or withholding represented on the forms, and did not issue the Forms W-2.

Thereafter, HAMILTON DESCHAMPS, OSIRIS DESCHAMPS and others intercepted and cashed the issued tax refund checks, which the IRS had mailed to addresses in Connecticut, Rhode Island, New York and elsewhere.  HAMILTON DESCHAMPS, OSIRIS DESCHAMPS, and others were able to intercept or control receipt of mail at these addresses, which included a commercial establishment that rents mailboxes located on Kimberly Avenue in New Haven.

The aggregate financial harm caused or attempted to be caused by the conspiracy to defraud the IRS was approximately $265,336.

In February, in addition to the conspiracy charges to which the brothers pleaded guilty, HAMILTON DESCHAMPS pleaded guilty to possessing the names, or a means of identification, of individuals on whose behalf he and others filed fraudulent tax returns.  He also pleaded guilty to using the social security numbers of others in violation of federal laws.

OSIRIS DESCHAMPS also pleaded guilty to using the social security numbers, or a means of identification, of Puerto Rico residents on whose behalf he and others filed fraudulent tax returns.  Specifically, OSIRIS DESCHAMPS used nine social security numbers in the course of making telephonic inquiries with the IRS about the status of claimed refunds.  He also pleaded guilty to filing materially false tax returns for himself for the tax years 2005 and 2006.

OSIRIS DESCHAMPS and HAMILTON DESCHAMPS are required to pay to the IRS restitution in the total amount of approximately $114,000.

This case was investigated by Internal Revenue Service – Criminal Investigation Division and the Social Security Administration, Office of Inspector General.  In addition, the assistance of agents of the Connecticut Department of Revenue Services and inspectors of the Rhode Island Department of Attorney General, Division of Taxation was instrumental in the investigation of this matter. The case was prosecuted by Assistant United States Attorneys Anastasia E. King and David T. Huang. 

CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov