FOR FURTHER INFORMATION CONTACT
AUSA VICKIE E. LEDUC at 410-209-4885
June 1, 2006
FOR IMMEDIATE RELEASE
THREE PLEAD GUILTY TO
FRAUDULENT TAX REFUND/IDENTITY THEFT SCHEME
BALTIMORE, Maryland - Clarenth Miles, age 30, and Antonio Miles, age 35, both of Baltimore, pleaded guilty today to charges relating to a scheme to obtain fraudulent federal tax refunds, announced United States Attorney for the District of Maryland Rod J. Rosenstein. Clarenth Miles and Antonio Miles pleaded guilty to conspiracy to defraud the IRS. Antonio Miles also pled guilty to identity theft charges. A third defendant, Cantrice Moore, age 31, pleaded guilty on May 18, 2006, to conspiracy and identity theft charges relating to the same fraudulent tax refund scheme. Antonio Miles and Clarenth Miles are married. Cantrice Moore was a friend of Clarenth Miles.
According to the statement of facts provided to the court as part of the plea agreements, from approximately March 1, 2000 through May 24, 2002, Clarenth Miles, Antonio Miles, and Cantrice Moore, all of Baltimore, Maryland, participated in a scheme to prepare and file false federal income tax returns seeking refunds. Most of the false tax returns prepared and filed by the defendants included fabricated wages, tax withholding amounts, and deductions. Some included false Schedule C business income, dependents, and Earned Income Credits. At least one reported false alimony payments. The defendants filed false returns in their own names as well as in the names of other persons, some of whom did not know that tax returns had been filed in their names.
During the period of the conspiracy, Clarenth Miles was employed by the Baltimore City Department of Social Services, Family Services section. In her capacity as a case manager in that agency, Clarenth Miles supervised the care of a number of foster children. In addition, she had access to the files of a number of other foster children who were in the program but not under her direct supervision. Clarenth Miles misappropriated the means of identification of several foster children to further the conspiracy, by reporting the children’s names and social security numbers on false tax returns. In some instances, Clarenth Miles filed false tax returns in the names of the foster children. In other instances, Clarenth Miles falsely listed the foster children as dependents on tax returns filed in the names of other people. Clarenth Miles also provided Cantrice Moore with some foster children’s names and social security numbers for Moore’s use on false tax returns seeking refunds as either the taxpayer purportedly filing the return or as purported dependents.
According to the statement of facts for Antonio Miles’ plea agreement, in August 2000, Antonio Miles provided Clarenth Miles with the name and social security number of an individual for her use in preparing and filing false federal individual income tax returns seeking refunds in that individual’s name. Antonio Miles then obtained a Maryland Motor Vehicles Administration identification card in the name of that individual and opened a bank account in that name, using the false identification. On January 23, 2001 and February 5, 2001, Antonio Miles received tax “refunds” from the IRS totaling more than $5,000, which were deposited into the bank account that Antonio Miles controlled.
During the conspiracy, the defendants prepared and filed false and fraudulent federal individual income tax returns seeking refunds totaling more than $200,000.
For the conspiracy charges, each defendant faces a maximum penalty of imprisonment for 10 years, followed by three years of supervised release, and a fine up to $250,000. For the identity theft charges, Antonio Miles and Cantrice Moore each face a maximum penalty of imprisonment for 15 years, followed by three years of supervised release, and a fine up to $250,000. U.S. District Judge William M. Nickerson scheduled Cantrice Moore’s sentencing for August 10, 2006 at 11:30 a.m. Judge Nickerson scheduled sentencing hearings for Clarenth Miles and Antonio Miles on August 24, 2006.
United States Attorney Rod J. Rosenstein praised the investigative work performed by the Internal Revenue Service - Criminal Investigation. Mr. Rosenstein also thanked Assistant U.S. Attorney Jonathan Biran, who is prosecuting the case.
This page last modifiedJune 1, 2006