Alabama Woman Sentenced for Involvement in $2.5 Million Stolen Identity Tax Refund Fraud Ring
A Phenix City, Alabama, woman was sentenced to prison today in U.S. District Court for the Middle District of Alabama for her involvement in a stolen identity tax fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama announced today.
Lasondra Miles Davis, 37, pleaded guilty earlier this year to one count of aggravated identity theft. Chief U.S. District Judge W. Keith Watkins of the Middle District of Alabama sentenced Davis to serve 24 months in prison to be followed by one year of supervised release and ordered her to pay $1,941 in restitution to the Internal Revenue Service (IRS). Davis’ mother, Teresa Floyd, pleaded guilty earlier this year to one count of conspiracy to defraud the United States and one count of aggravated identity theft. Floyd will be sentenced on Oct. 15.
According to court documents, between March 2011 and May 2014, Davis and Floyd operated several tax preparation businesses in the Phenix City area, including T & L Tax Service. Davis obtained stolen identities which, according to allegations in the superseding indictment, Floyd then used to file more than 900 false federal income tax returns that claimed more than $2.5 million in tax refunds. Davis, Floyd and others caused the fraudulently obtained refund checks to be cashed at several businesses in Alabama and Georgia.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Michael C. Boteler and Michael P. Hatzimichalis of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.