A Clayton County tax preparer who helped convince thousands of people that they could get “free government money” by providing their names and Social Security numbers was found guilty of fraud this week for using the IDs to collect more than $19 million in federal tax refunds.
Prosecutors said the U.S. Postal Service became suspicious after multiple checks and other mail from the Internal Revenue Service, Social Security Administration and other federal agencies were addressed to Bernando Davis’ Stockbridge address. An unidentified mail carrier was first in alerting the U.S. postal inspector’s office.
A federal jury in Atlanta on Thursday found Davis, 27, guilty of conspiracy, wire fraud and aggravated identity theft after he used the stolen identities to file false federal income tax return, prosecutors said. He was taken into custody after the verdict.
“Almost every day we learn of another identity thief who has found a unique way to steal personal identifying information,” U.S. Attorney Sally Quillian Yates said in a statement announcing the guilty verdict. “The common theme is that the thieves always use the information they steal to commit a second theft: the theft of money.”
Prosecutors said the scheme affected more than 15,000 victims in every state of the country.
Prosecutors said Davis, owner of Davis Tax Service, committed the fraud between July 2010 and January 2013 with the help of two co-conspirators. They convinced clients to fill out applications for nonexistent “government stimulus payments.” Sometimes they cut and taped the signatures from the stimulus applications onto the returns, prosecutors said.
The conspirators used toll-free telephone numbers, websites, fliers and radio ads to lure clients and to get their personal information. They also used names of individuals in prisons and homeless shelters, prosecutors said.
The tax refunds were sent directly to Davis’ Stockbridge home or were directed to bank accounts that Davis and co-conspirators owned.
A search of Davis’ home in February of this year yielded names, Social Security numbers and birth dates.
A Feb. 19 sentencing is set for Davis. He could receive multiple years in prison on 15 counts of wire fraud and aggravated identity theft. He could also face monetary fines of up to $250,000 for each count.
Davis’ co-conspirators, Kevin Sonnier of Ellenwood and Carla Jefferson of Palmdale, Calif., earlier pleaded guilty to conspiracy, wire fraud and aggravated identity theft.
Sonnier agreed to $7 million in full restitution to the IRS in addition to forfeiture of Clayton County real estate, bank accounts, electronic devices and jewelry previously seized.
Sonnier’s sentencing is set for Jan. 7 and Jefferson’s is set for Feb. 18.
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