Mom & son claim more than $4 million in tax refund fraud scheme

MONTGOMERY, Ala. – An Alabama woman was sentenced today to serve 51 months in prison for her role in a stolen identity refund fraud conspiracy.

According to court documents and evidence presented at the sentencing hearing, between 2007 and 2012, 56-year-old Pamela Ann Smith, of Lanett led a large-scale stolen identity refund fraud conspiracy scheme from her tax preparation business, Jaycal Tax Service, in Phenix City.

Smith recruited her son, Calvin Perry and his friend, Ernest Simmons, Jr., to participate in the scheme.  As part of the conspiracy, Smith, Perry and Simmons opened multiple bank accounts and rented post office boxes. They filed more than 1,200 federal income tax returns using the stolen personal identification information of actual individuals, which included the victims’ names and social security numbers.

The tax returns filed by Smith and her co-conspirators sought more than $4 million in fraudulent refunds from the Internal Revenue Service. U.S. Treasury checks were mailed to physical addresses and post office boxes under Smith’s control and subsequently deposited into multiple bank accounts controlled by Smith, Perry and Simmons.  Smith personally received more than $300,000 from this scheme.

Smith pleaded guilty in November 2015 to one count of conspiracy to defraud the government with respect to filing false income tax refund claims and one count of aggravated identity theft. Perry and Simmons also pleaded guilty in December 2015 for their involvement in this SIRF scheme and are scheduled to be sentenced in April.

In addition to the prison term, U.S. District Judge John Antoon, II ordered Smith to serve three years of supervised release and pay restitution in the amount of $340,057.

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