Former Bank Employees Sentenced for Executing Stolen Identity Tax Refund Fraud Scheme

ATLANTA –Jeoffrey Jenkins and Vaughn Chambers have been sentenced for their roles in a two-year long tax refund fraud scheme that generated hundreds of false tax returns and sought over $2.8 million in fraudulent tax refunds.  Jenkins and Chambers, both bank employees, stole personally identifying information from bank customers and used that information to open bank accounts to receive the fraudulent tax refunds.

“This case is one more unfortunate example of the growing problem of stolen-identity tax return fraud,” said U.S. Attorney John Horn.  “As criminals attempt to employ more sophisticated methods, citizens need to be vigilant about protecting their personal information.”   

“These unscrupulous defendants were trusted insiders who abused their positions to commit crimes and victimize members of our community and innocent taxpayers for their own personal gain. The sentences these defendants received will not replace the losses that were incurred or the harm endured by the victims. However, it does illustrate that IRS Criminal Investigation, along with our law enforcement partners, are committed to pursuing individuals who commit these types of crimes,” stated IRS Special Agent in Charge, Veronica F. Hyman-Pillot.

“The United States Secret Service will continue to collaborate with its law enforcement partners to target and arrest individuals who violate their positions of trust to illegally enrich themselves,” said Malcolm D. Wiley, Sr., Acting Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “This sentencing should serve as a reminder that criminals will bear the consequences of their actions and be sent to prison for their crimes.”

According to U.S. Attorney Horn, the charges and other information presented in Court: From at least February 2013 until at least March 2014, Jenkins and Chambers opened numerous bank accounts using stolen personally identifying information.  Those bank accounts were then listed in over 2,000 fraudulent tax returns filed with the Internal Revenue Service, with the intention that any tax refund due for the fraudulent tax returns would be deposited into the fraudulently opened bank accounts.   The scheme came to light primarily through a report from a Suntrust Bank investigator who told law enforcement that Chambers was associated with anomalous banking activity. When confronted by law enforcement, Chambers provided information that implicated Jenkins.  And from there, tax filings and bank records unraveled the defendants’ involvement in the scheme.   

In total, the bank accounts opened by the two men were set up to receive approximately $2.5 million in fraudulent tax refunds.  Out of that amount, approximately $500,000 was actually deposited into the bank accounts by the IRS.  

Jeoffrey Jenkins, 50, and Vaughn Chambers, 40, both from Atlanta, Georgia, were sentenced by U.S. District Judge Mark H. Cohen as follows: 

• Jenkins was sentenced to six years, three months in prison, and was ordered to pay $570,034 in restitution.

• Chambers, who was recruited into the scheme by Jenkins, received two years in prison, and was ordered to pay $9,464 in restitution.

Both defendants were ordered to serve three years of supervised release when they complete their prison terms.

This case was investigated by the Internal Revenue Service Criminal Investigations and United States Secret Service.

Assistant United States Attorney Samir Kaushal prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.