Used Inmate Social Security Numbers To Claim Inflated Refunds
A former Washington State Prison inmate who led a tax fraud scheme from prison, pleaded guilty Oct. 1, 2013 to eleven counts of tax fraud and three counts of illegal possession of firearms, explosives and a ballistic vest, announced U.S. Attorney Jenny A. Durkan. KENNETH RANDLE DOOR, 44, was indicted on the tax charges along with three other co-conspirators in April 2012. At the time of the tax fraud indictment, DOOR was already in custody on the weapons charges. Sentencing on the tax charges is scheduled before U.S. District Judge Benjamin Settle on Dec. 16, 2013. DOOR will be sentenced on the illegal weapons possession charges on Dec. 12, 2013. At that sentencing hearing before U.S. District Judge Ronald B. Leighton, prosecutors will argue that DOOR is an Armed Career Criminal and therefore should be sentenced at or above the mandatory minimum of 15 years in prison.
According to the indictment, in 2008 and 2009, the defendants conspired to file fake tax returns using the names and Social Security numbers of prison inmates to claim fraudulent refunds. DOOR was incarcerated at the Washington State Penitentiary in Walla Walla. Other conspirators were living in Tacoma and Puyallup. Using the internet the conspirators identified companies that had declared bankruptcy and had recently closed. The conspirators created fake W-2 forms indicating wages paid and taxes withheld from the individuals whose identities they used. Virtually all of these individuals were prison inmates at the time who had not been employed by the now defunct companies. The conspirators filed at least 31 false tax returns, attempting to obtain more than $145,000 in refunds. The conspirators obtained nearly $72,000 in fraudulent tax refunds.
DOOR’s co-conspirators in the tax scheme have been sentenced to terms ranging from eight months to 33 months in prison.
The tax case was investigated by Internal Revenue Service Criminal Investigation (IRS-CI). The weapons case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The cases are being prosecuted by Assistant United States Attorneys Steven Masada and Norman Barbosa.
Source: U.S. Department of Justice, Office of the United States Attorneys
