Christopher Davis of Montgomery County Faces Federal Indictment for Stolen Identity Refund Fraud Scheme
July 1, 2013 — Because tax fraud is so costly, the IRS Whistleblower Office was created by the Tax Relief and Health Care Act of 2006, providing a mechanism for responding to tips from whistleblowers about financial crimes involving tax violations. Tipsters who work with the IRS by providing unique information about tax fraud may find themselves eligible for a financial reward depending on a number of factors—a financial reward of 15 to 30 percent of the total amount recovered by the IRS. Financial rewards are considered important to give whistleblowers an incentive to collaborate with the government.
Alleged Tax Fraud Leads to Multi-Count Federal Indictment
Montgomery County resident Christopher Cordelle Davis has been indicted by a federal grand jury for his part in a scheme to use stolen identities to file fraudulent tax returns, according to the Justice Department and the Internal Revenue Service (IRS). The indictment charges Mr. Davis with conspiracy to defraud the United States, five counts of aggravated identity theft, and five counts of wire fraud.
The indictment alleges that Mr. Davis provided stolen identities to his co-conspirator Kenneth Jerome Blackmon Jr. The two men then used the stolen identities to file false tax returns and received fraudulent refunds on debit cards. Davis recruited other individuals to cash out the debit cards on trips through various states. According to the allegations in the indictment, in September 2011, Davis had in his possession over 600 stolen identities. Mr. Blackmon, the co-conspirator, has already been convicted and has been sentenced to a total of 51 months in prison for his part in the identity theft and tax fraud conspiracy.
If he is convicted, Mr. Davis could face many years in prison, as well as fines, mandatory restitution, and forfeiture.
Insiders Help Uncover and Stop Tax Fraud
Insiders with information about tax fraud can help stop the embezzlement by notifying the IRS and becoming a government informant. Before reaching out to the IRS, however, whistleblowers should speak with an experienced lawyer to understand how the process works. Waters & Kraus’ financial fraud attorneys offer tipsters the legal counsel and representation they need and deserve. Contact us by email or phone our attorneys at 855.784.0268 to discuss how we can help you through the process and safeguard your rights.