Two Brothers and a Sister Were Convicted of Numerous Counts of Identity Theft, Mail Fraud and Money Laundering
Ann Arbor, Michigan - Three defendants, two brothers and a sister were convicted in Ann Arbor on numerous counts of conspiracy, mail fraud, aggravated identity theft, and engaging in illegal monetary transactions, U.S. Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement was Manny Muriel, Special Agent in Charge of the Detroit Office of the Internal Revenue Service - Criminal Investigation.
The 10-day trial was conducted before U.S. District Judge Judith Levy. Sentencing is scheduled for August 21, 2017 at 10 am.
Defendants Anthony Gandy, Christopher Gandy and Sharon Gandy-Micheau, were each convicted of numerous counts of conspiracy, mail fraud, aggravated identity theft, and engaging in illegal monetary transactions. The conspiracy involved over 20 fraudulent income tax returns for trusts that requested over $1.4 million in refunds. The IRS mailed to the defendants a number of refund checks totaling $940,000.
According to evidence presented at trial, the defendants participated in a scheme to file fraudulent Forms 1041, U.S. Income Tax Returns for Estates and Trusts. The scheme was facilitated by opening post office boxes and bank accounts to receive the proceeds of the scheme. The funds were either deposited into the bank accounts and the proceeds were quickly withdrawn or the refund checks were cashed by a Detroit area check cashing store.
In addition, two witnesses testified they had previously lost their identification and social security cards. Those documents were either recovered at the residence of Sharon Gandy-Micheau or images were found on a computer at the same residence. Their identification was used to further the scheme.
"These defendants attempted to steal taxpayer money, and they did so by using the identities of innocent victims," McQuade said. "This case should signal the ability of IRS investigators to detect fraud and bring offenders to justice."
IRS-Criminal Investigation Special Agent in Charge Manny Muriel said, “Investigating refund fraud and identity theft remains a priority for IRS Criminal Investigation. Today’s guilty verdicts should send a clear message to would-be criminals that IRS-Criminal Investigation will continue to pursue those who prey on innocent victims and steal from the American tax system.”
The case was investigated by agents of the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by AUSAs Stephen Hiyama and Ross Mackenzie with the assistance of paralegal Carol Oliver.