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Justice News

Department of Justice
U.S. Attorney’s Office
Middle District of Alabama

FOR IMMEDIATE RELEASE
Thursday, October 15, 2015

Phenix City Woman Sentenced for Involvement in $2.5 Million Stolen Identity Tax Refund Fraud Ring

Montgomery, Ala. – A Phenix City, Alabama, woman was sentenced to serve five years in prison today in U.S. District Court for the Middle District of Alabama for her involvement in a stolen identity tax fraud (SIRF) scheme, U.S. Attorney George L. Beck Jr. of the Middle District of Alabama, and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department's Tax Division announced today.

Teresa Floyd, 53, was sentenced by Chief U.S. District Judge W. Keith Watkins of the Middle District of Alabama to serve 60 months in prison to be followed by three years of supervised release and was ordered to pay $734,565 in restitution to the Internal Revenue Service (IRS).

Floyd pleaded guilty earlier this year to one count of conspiracy to defraud the United States with respect to claims and one count of aggravated identity theft.  Floyd’s daughter, Lasondra Miles Davis, 37, pleaded guilty earlier this year to one count of aggravated identity theft.  On Sept. 1, Davis was sentenced to serve two years in prison to be followed by one year of supervised release and was ordered to pay $1,941 in restitution to the IRS.

According to court documents, between March 2011 and May 2014, Floyd and Davis operated several tax preparation businesses in the Phenix City area, including T & L Tax Service.  Floyd obtained stolen identities which, according to allegations in the superseding indictment, she and her co-conspirators then used to file more than 900 false federal income tax returns that claimed more than $2.5 million in tax refunds.  Floyd, Davis and others caused the fraudulently obtained refund checks to be cashed at several businesses in Alabama and Georgia.

U.S. Attorney Beck Jr. and acting Assistant Attorney General Ciraolo 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.

Topic(s): 
Tax
Component(s): 
Updated February 4, 2016