She appeared to live modestly, at least to outsiders. Yet Annette Ford was stockpiling designer bags, hiring tutors for her children and buying top-of-the-line computers in a lifestyle that did not seem to fit her means.
A simple investigation into a couple stolen checks has evolved into what Duluth authorities say is a wide-ranging tax fraud case involving Ford, three separate identity theft rings with half a dozen or more conspirators and upwards of 5,800 victims.
Ford allegedly made about $2.5 million by stealing Social Security checks, filing 393 fraudulent tax returns and passing counterfeit checks. And police say she is only a mid-level player. She is expected to be in Magistrate Court in Gwinnett County on Friday for a bond and probable cause hearing.
Though Ford was taken into custody on April 14, police have not begun to contact victims, while they continue to break down data,, according to Investigator Fran Foster of the Duluth Police Department, the lead detective on the case.
The investigation started small, Foster said. The Social Security Administration asked her to look into two checks reportedly stolen from a nursing home in Gainesville and deposited in Duluth banks. That simple theft probe quickly morphed into something far bigger.
"I can tell you off the top of my head there are going to be three separate cells involved in this," Foster said. "If we do what we're hoping to do, we're going to probably bring down a major operation in Atlanta."
After obtaining a warrant to search Ford's house, police found boxes of financial documents such as old mortgage applications, HUD documents and tax forms. In three-ring binders, Ford had collected the names, dates of birth and Social Security numbers of 5,779 people, Foster said.
Ford, a former real estate broker whose license has been suspended, created a company called E-Pro tax service that is registered with the state. Setting up the company allowed her to access individuals' credit reports from third-party credit reporting agencies, Foster said.
While not living ostentatiously, police said she did indulge in extravagant purchases such as Louis Vuitton purses. Meanwhile, she fraudulently obtained public assistance such as food stamps and Medicaid.
"She's understated in public, but she's overstated and lives the life of entitlement in her residence," Foster said. "Her two adopted kids [12-year-old twins] have the best of everything -- the best computers and she is paying for tutors. All with stolen money."
Attorney Nicholas A. Lotito, who is representing Ford, said that he hoped to get a bond for his client at Friday's hearing. He pointed out that she does not have any significant criminal history.
"From the very beginning, the detective in the case has said that there are other people involved," Lotito said. "Annette turned herself in voluntarily and has tried to cooperate in the investigation."
No charges have been brought against other conspirators yet, but Foster expects at least half a dozen others to eventually be prosecuted. She said Duluth Police are collaborating with the U.S. Treasury Department and hoping to hand off the case to federal prosecutors, who can seek stiffer penalties.
While many potential victims may be unaware that their identities have been stolen, some have already begun contacting investigators. One of them, Janet Johnson, 59 of Hiawassee, said the IRS returned her tax filing when she tried to submit it earlier this year. The agency told her someone already claimed a $1,000 tax return after co-opting her name, birth date, Social Security number and maiden name.
Johnson has spent the past few months contacting all her credit card companies, as well as the IRS, FBI and local police departments in an exhaustive attempt to clear her name.
"Don't come after what my husband and I have worked for all our life, because you will wish you didn't," Johnson warned. "Before it's over with, whoever has got my Social Security number is going to wish they didn't have it."
Experts say tax fraud has become more prevalent in both the U.S. and Georgia as the number of criminal investigations initiated by the IRS and the Georgia Department of Revenue continues to soar.
Revenue Department officials detected more than 52,000 fraudulent tax returns in Georgia in the 2010 tax season, halting roughly $41 million in refunds. In 2009, the department found nearly 29,000 cases.
Staff writer Marcus K. Garner contributed to this article.
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