U.S. Department of Justice Alice H. Martin United States Attorney Northern District of Alabama

CORDOVA WOMAN PLEADS GUILTY TO TAX FRAUD AND OTHER CHARGES

Alice H. Martin, United States Attorney for the Northern District of Alabama, and Katherine Henkin, Supervisory Special Agent, Internal Revenue Service, and Carmen S. Adams, Special Agent in Charge, Federal Bureau of Investigation, announce that AMELIA STUDDARD, age 30, of Cordova, Alabama, pled guilty this week to three counts of a federal indictment on charges of filing false claims for federal income tax refunds, identity fraud, and bank fraud. According to Martin: STUDDARD made a total of $165,263 in false claims through the submission of twenty-six false federal income tax returns. STUDDARD used the names and social security numbers of deceased individuals that she obtained on the Internet to prepare twenty-three of the false claims for tax refunds. STUDDARD used the name and social security number of an acquaintance who had purchased some glass products from her to file another false tax refund claim. STUDDARD obtained the victim's social security number from the check used to make payment for the glass products. Two false claims were done in STUDDARD'S own name for her 1999 and 2000 tax years. She overstated her federal tax withholding by $24,000 in 1999 and $56,000 in 2000. STUDDARD deposited eighteen of the false income tax refund checks into bank accounts that she had sole signature authority. The other eight false refund checks were deposited into accounts opened by laborers that were building a deck for STUDDARD. STUDDARD asked the laborers to open the accounts and gave them instructions on what funds to remove. STUDDARD told the laborers that she had either insurance money from an overseas account or funds from an inheritance that she did not want her husband to know about.

STUDDARD could receive a maximum of 30 years in prison and a fine of up to $1,000,000 for bank fraud; a maximum of 15 years in prison and a fine of up to $250,000 for identity theft; and a maximum of 5 years in prison and a fine of $250,000 for the false claim. Sentencing is scheduled for October 3, 2003, at 11:30 a.m., before United States District Judge Karon O. Bowdre.

" The filing of false tax returns will meet with swift prosection" said U.S. Attorney Alice Martin. "The additional factor of this defendent stealing the 'idenity' of deceased individuals adds to the severity of her fraud".

This case was investigated by Special Agents of the Internal Revenue Service and FBI.

Assistant United States Attorney Michael V. Rasmussen is prosecuting the case.
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