Tuesday, October 22, 2013

Massive Tax Fraud Takedown During Government Shutdown -

Most of the government was shutdown mid-October – but that didn't stop law enforcement from a massive take down in an ongoing effort to stamp out criminal tax fraud in South Florida.
Tax Return - 1040
Federal charges were filed over a number of days against 45 defendants in 30 separate cases for tax fraud and identity theft. The arrests were the result of a team effort between federal and local members of the South Florida Identity Theft Tax Fraud Strike Force (Strike Force). Members of Strike Force and participating agencies include the United States Attorney’s Office, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, Federal Bureau of Investigation (FBI), Miami Field Office, U.S. Secret Service, U.S. Postal Inspection Service (USPIS), Miami Division, Social Security Administration, Office of Inspector General (SSA-OIG), Aventura Police Department, North Miami Beach Police Department, Miami-Dade Police Department, Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Town of Davie Police Department, Florida Highway Patrol, Lee County Sheriff’s Office, Broward Sheriff’s Office (BSO), Ft. Lauderdale Police Department, Coconut Creek Police Department, Sunrise Police Department, Coral Springs Police Department, Miramar Police Department and North Miami Police Department.
Through its partnership, the Strike Force was able to identify and charge 45 defendants said to be responsible for more than 20,000 stolen identities; 38 of those defendants have been arrested.
Those stolen identities are valuable. It’s alleged that the personally identifying information gleaned from the identities stolen by these defendants resulted in more than $11.5 million in fraudulent tax refunds; nearly $40 million more in intended losses was stopped as a result of the investigation.
Stolen identity/tax refund fraud is an increasing problem in the U.S. and one the IRS considers a top priority. The crime topped the IRS list of Dirty Dozen Tax Scams for 2012 and 2013. As a result, IRS has ramped up enforcement to identify and block fraud, including increased investigations, arrests and prosecutions. In 2012 alone, these efforts resulted in preventing $20 billion (yes, with a b) in fraudulent refunds (up 42% from 2011).
Identity theft and tax-related fraud is particularly rampant in South Florida. According to a report from the U.S. Treasury Inspector General for Tax Administration (TIGTA), the state of Florida has the highest rate of stolen identity tax refund fraud in the country. Concentrations are particularly high at the southern tip: the number of false returns filed in Miami alone is 46 times the national average.
The Strike Force – a partnership between federal, state and local agencies – was created in 2012 to make it easier to target and prosecute fraudsters. Since its creation, 269 defendants have been charged with stealing 76,700 identities (that’s more than the population of Wilmington, Delaware). That includes a number of high profile cases like Rashia Wilson (the self-proclaimed “Queen of IRS Tax Fraud”) and Maurice Larry. This latest take down, however, is the largest to date in the region.
TIGTA estimates that the IRS could issue as much as $21 billion in fraudulent tax refunds over the next five years. In South Florida, however, U.S. Attorney Wifredo Ferrer and the rest of Strike Force has a message for potential criminals: We’re on it.

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