34 charged with tax fraud conspiracy in Battle Creek
More than 30 people from Battle Creek have been indicted in federal court and accused of committing a conspiracy to defraud the IRS of $22 million through false tax forms.
United States Attorney Patrick Miles Jr. announced the indictments in Grand Rapids for 34 people on Tuesday.
During raids that began early Monday, 24 people were arrested by officers from several federal, state and local law enforcement agencies.
An investigation officials said began in 2008 showed the defendants allegedly used information obtained in part from patients and employees of the Battle Creek Veterans Affairs Medical Center and from inmates of the Michigan Department of Corrections to file 4,668 federal income tax returns claiming "false, fictitious and fraudulent refunds totaling over $22 million" between the 2007 and 2014 tax years.
Derrick J. Gibson, 52, of Battle Creek, was named the lead defendant.
Officials said the defendants used obtained names, social security numbers, and dates of birth to file fradulent returns.
According to the indicment:
• MDOC inmates including Bobby Crabtree, David Haymer and Joseph J. Johnson provided personal information of fellow inmates and expected money or personal items in exchange.
• Inmate Shawn McKnight attempted to recruit others outside the prison to provide personal information.
• VA employees including Alvin Stephenson II provided personal information of veterans who were patients.
• Several others filed the false returns, often using the personal information to claim dependents or earned income credits and obtain tax refunds.
• Several of the defendants opened and maintained bank accounts to deposit the tax refunds.
The indictment outlined several cases of people filing false tax forms and receiving several thousands of dollars in refunds.
Each defendant faces up to 10 years imprisonment and a fine of $250,000 if convicted.
The case was investigated by: the Internal Revenue Service; Veterans Affairs-Office of the Inspector General; U.S. Postal Inspection Service; the Bureau of Alcohol Tobacco and Firearms; Department of Homeland Security; Battle Creek Police Department; Albion Police Department; Calhoun County Sheriff Department; and Michigan State Police.
“In a modern world in which personal identification information can be acquired in various ways and misused, and where government funds are growing ever scarcer, my office will continue to lead investigations into cases where identification information was misused as a tool to commit tax fraud,” Miles said in a statement. “My office will bring to justice those willing to misuse other people’s identification information, often victimizing them, in order to steal money from the government.”
The investigation was begun several years ago by the Battle Creek Police Department and the IRS and according to the indictment, the defendants began their fraud in 2008.
The defendants listed in the press release are:
- Gibson
- Charmica Griffin, age 44
- Stephanie T. Baker, 34
- Latia M. Williams, 41
- Alvin E. Stephenson II, 46
- Sandria M. Blakley, 34
- Edward Warden, Jr., 47
- Chanel McClenney, 35
- Darwin Gibson, 25
- Bobby Crabtree, 45
- Deqynn Gibson, 24
- Darrien Gibson, 25
- Rochelle R. Velasquez, 29
- Scherrie Mcnutt, 35
- Devoine Gibson, 51
- Prentis H. Gibson, 74
- Lamont Joyner, 25
- Shameika N. Carr-McClenney, 33
- Charleeta Cork, 39
- Keith Cork, 41
- Maiya R. Jackson, 21
- Shawn McKnight, 36
- David Haymer, 48
- Diallo Dotson, 42
- Romell Bolden, 25
- Labrisha Porter, 23
- Kypree Taylor, 22
- Rosemary Boyd, 53
- Patricia Riddle-McClinton, 60
- Joseph Jeremy Johnson, 29
- Kisha N. Evans, 36
- Simone Watkins, 47
- Romaro Carswell, 45
Contact Trace Christenson at 269-966-0685 or tchrist@battlecreekenquirer.com. Follow him on Twitter: @TSChristenson. Contact Jennifer Bowman at 269-966-0589 or jbowman@battlecreekenquirer.com. Follow her on Twitter: @jenn_bowman