14 DAY TRIAL // A woman from Phenix City, Alabama, was arrested this week on charges of wire fraud and aggravated identity theft, as part of a large scale fraudulent tax refund operation that claimed over $7.5 / €6.58 million from the US Internal Revenue Service (IRS).
Talashia Hinton, also known as LayLay and LaLa, filed more than 3,000 false income returns between years 2012 and 2013, based on personally identifiable information (PII) obtained from Tamika Floyd, who worked for a state agency in Opelika, Alabama.
Multiple individuals were involved in the scheme
Floyd provided the data via email communication in exchange for money, and Hinton, along with another conspirator named Keshia Lanier, would file the fraudulent tax reports.
According to the indictment document, Hinton also used the information to apply for credit at different financial institutions, including Atlas Financial.
Others were also involved in the operation, providing Electronic Filing Identification Numbers (EFINs) in the names of multiple tax preparation services.
It is unclear from the court document how much of the money the fraudsters managed to get from the IRS. In a similar operation conducted by five individuals in Georgia, the IRS granted refunds for $2 / €1.75 million, although the individuals had filed claims for a total of $6.6 / €5.78 million.
The indictment reveals fraudulent tax returns in the name of about 20 people, but the number may be much larger.
Penalty includes jail time and monetary restitution
Hinton faces one count of conspiracy to defraud the government of the US, five counts of wire fraud, and five counts of aggravated identity theft.
If found guilty, she could end up serving 20 years in prison for each count of wire fraud.
Apart from this, the conspiracy charge carries a maximum penalty of five years in jail and the aggravated theft count comes with a mandatory minimum sentence of two years of prison time.
To all this, monetary penalties (fines, forfeiture and restitution) are added.