Ferguson Sisters Indicted for Identy Theft, Filing False Tax Returns

8/7/2019 Ferguson Sisters Indicted for Identy Theft, Filing False Tax Returns

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UNITED STATES OF AMERICAV .

LORETTA FERGERSONandTRACEY FERGERSON

FiLEDMAR 232011

IN THE DISTRICT COURT OF THE UThHTED STATESFOR THE MIDDLE DISTRICT OF ALABAMACL E RKNORTHERN D IVISIONU. S. DISTRICT COURTMIDDLE DIST. OF ALACR. NO. 'Jic-i- 9'-A1t2'18 U.S.C. 286;18 U.S.C. 287;18 U.S.C. 1343;18 U.S.C. 1028A(a)(1), (c)(5).INDICTMENT

The Grand Jury charges:INTRODUCTION

At all times relevant to this Indictment:Defendant LORETTA FERGERSON was a resident of Montgomery C ounty,

Alabama within the Middle District of Alabama. From on or about January 1, 2005 to on or aboutFebruary 8, 2008, D efendant LORETTA FERGERSON owned and operated Fast Tax Cash, a taxpreparation business located in Montgomery C ounty, Alabama.

2. Defendant TRACEY FERGERSON was a resident of the Middle District ofAlabama. Defendants LORETTA FERGERSON an d TRACEY FERGERSON were sisters.

3. The Internal Revenue Service ("IRS") was an agency of the United StatesDepartment of Treasury responsible for enforcing and administering the tax laws of the UnitedStates, and collecting taxes owed to the U nited States.

4. HSB C T axpayer Financial Services, Inc. ("HSBC") wa s and is a federally insuredfinancial institution which issued tax refund anticipation loans to customers in Alabama.

Santa B arbara Ba nk and Trust was and is a federally insured financial institutionwhich issued tax refund anticipation loans to customers in Alabama.

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COUNT ONE(Conspiracy to Defraud the Governm ent with Respect to Claims)1. The factual allegations contained in Paragraphs 1 through 5 of the Introduction

Section of this Indictment are realleged and incorpo rated herein as if copied verbatim.2. Beginning in or about D ecember 2006, and continuing until in or about February

2008, within the Middle D istrict of Alabama and elsewhere, Defendants LORETTAFERGERSON and TRACEY FERGERSON and others, both known and unknown to the grandjury, unlawfully and know ingly agreed, combine d, and conspired with others and each o ther todefraud the United S tates by obtaining and aiding to obtain the paym ent and allowance of false,fictitious, and fraudulent claims.

MANNER AND MEANS3. To accomplish the objects of this scheme, Defendants LORETTA FERGERSON

an d TRACEY FERGERSON used the following manner and means, among others:4. Defendants LORETTA FERGERSON and TRACEY FERGERSON, and others,

both known a nd unknow n to the grand jury, would and did agree to cause the preparation and filingof false federal income tax returns with the IRS.

5. Defendant TRACEY FERGERSON would and did obtain the means ofidentification of individuals, including their names and Social Security numbers. DefendantTRACEY FERGERSON would and did provide these means of identification to D efendantLORETTA FERGERSON for the purpose of causing the preparation and filing of false federalincome tax returns with the IRS.

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6.Defendant LORETTA FERGERSON would and did prepa re and electronically fileand cause to be prepared and electronically filed false IRS F orms 1040 a nd 1040A, U .S. IndividualIncome Tax Returns.

7. Defendant LORETTA FERGERSON would and did apply for and obtain refundanticipation loans ('RALs") based on the false tax returns.

8. Defendants LORETTA FERGERSON and TRACEY FERGERSON would anddid cash the fraudulently obtained RA L checks and retain the proceeds.

9. Defendants LORETTA FERGERSON and TRACEY FERGERSON would anddid take steps to conceal the existence of the co nspiracy to include crea ting false records anddocuments.

ACTS IN FURTHERANCE OF THE CONSPIRACY10. To accom plish the objectives of the conspiracy, in the Middle D istrict of Alabama

and elsewhere, and in furtherance thereof, the Defendants, and others, both known and unknown tothe grand jury, comm itted, among other acts, the following ac ts in furtherance of the conspiracy:

11. Defendant TRACEY FERGERSON maintained a spiral bound notebook thatcontained nam es and Social Sec urity numbers used in the preparation of false tax returns.

12. Defendant LORETTA FERGERSON prepared and filed and caused to be preparedand filed false and fraudulent IRS F orms 1040 and 1040A, U.S . Individual Income Tax Returns inthe nam es of the following individuals, on or about the dates and fo r the amou nts listed below:

Paragraph Name!Date of ActTax YearRefund ClaimedInitials13. Loretta1/13/20072006$2,787Fergerson -3 -6422713.3Case 2:11-cr-00048-MEF -CSC Document 1 Filed 03/23/11 Page 3 of 11


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Paragraph Name!Date of ActTax YearRefund ClaimedInitials14. M.K.1/13/20072006$4,58615. C.P.1/13/20072006$4,58616. W .L .1/13/20072006$4,58617. V.J.1/13/20072006$4,58618. S.G.1/13/20072006$4,58619. V.S.1/13/20072006$4,53620. A.H.1/17/20072006$4,58621. K.L.1!17/20072006$4,58622. C.M.1/12/20082007$3,67223. D.R.1/12/20082007$4,71624. M.K.1/28/20082007$4,71625. M.H.2/1/20082007$4,66726. T.R.2/1/20082007$2,853

27. On or about Decem ber 7, 2006, D efendant LORETTA FERGERSON emailedeleven false driver's license images and two false Social Secu rity card images from email addresslfergersonknology.net to [email protected] .



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28 .On or about the dates and in the amounts listed below, Defendants LORETTAFERGERSON and TRACEY FERGERSON caused to be negotiated the fo llowing fraudulentlyobtained RAL checks:

ParagraphDateNameonCheckDate onBankAmountCashedCheckNumberCheck29. 1/29/2007K.L.720124291/25/2007HSBC$4,176.0530. 1/30/2007A.H.720124001/25/2007HSBC$4,176.0531. 1/30/2007S.G.716596851/25/2007HSBC$4,206.0532. 1/30/2007C.P.716596911/25/2007HSBC$4,206.0533. 1/30/2007V.S.720124641/25/2007HSBC$4,156.0534. On or about February 9, 2007, D efendant LORETTA FERGERSON issued check

no. 1185 to A.H . in the amount of $4,079.00.35. On or about October 4, 2007, Defendant LORETTA FERGERSON emailed an

electronic copy of an Alabama State Driver's License from email address lfergersonknology.netto loferg2000yahoo.com . Defendant LORETTA FERGERSON edited this electronic copy tocreate a fraudulent identification card in the name of D .R.

All in violation of Title 18, United States C ode, Section 286 .

COUNTS TWO THROUG H FIFTEEN(False, Fictitious, or Fraudulent Claims)

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The factual allegations contained in Paragraphs 1 through 5 of the IntroductionSection of this Indictmen t are realleged and incorpo rated herein as if copied verbatim.

2.On or about the dates listed below, within the Middle District of Alabama,Defendants LORETTA FERGERSON and TRACEY FERGERSON knowingly made andpresented, and caused to be made and presented, to the IRS, an agency of the U nited StatesD epartment of the Treasury, claims against the United States for payment, which they knew to befalse, fictitious, and fraudulent, by preparing and filing false federal incom e tax returns for theindividuals whose nam e or initials are listed below, wherein claims for incom e tax refunds for theamou nts listed below were ma de, knowing such claim s to be false, fictitious, and fraudulent:

CountName!Date of OffenseTax YearRefund ClaimedInitialsTWOLoretta1/13/20072006$2,787FergersonTHREEM.K.1/13/20072006$4,586FOURC.P.1/13/20072006$4,586FIVEW. L .1/13/20072006$4,586SIXV.J.1/13/20072006$4,586SEVENS.G.1/13/20072006$4,586

EIGHTV.S.1/13/20072006$4,536NINEA.H.1/17/20072006$4,586-6-6422713 3Case 2:11-cr-00048-MEF -CSC Document 1 Filed 03/23/11 Page 6 of 11


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CountName! Date of OffenseTax YearRefund ClaimedInitialsTENK.L.1/17/20072006$4,586ELEVENC.M.1/12/20082007$3,672TWELVED.R.1/12/20082007$4,716THIRTEENM.K.1/28/20082007$4,716FOURTEENM.H.2/1/20082007$4,667FIFTEENT.R.2/1/20082007$2,853All in violation of Title 18, United States Code, Section 287 a nd 2.COUNTS SIXTEEN, SEVENTEEN, AND EIGHTEEN(Wire Fraud)The factual allegations contained in Paragraphs 1 through 5 of the Introduction

Section of this Indictment are realleged and incorporated herein as if copied verbatim.2.From in or about Decem ber 2006 through in or about February 2008, within theMiddle D istrict of Alabama and elsewhere, Defendants LORETTA FERGERSON an d TRACEYFERGERSON, having knowingly and intentionally devised and intended to devise a scheme andartifice to defraud, and to obtain m oney by m eans of false and fraudulent pretenses, representations,

and promises, caused to be transmitted by means of wire communication in interstate and foreigncomm erce, comm unication, signals, and writings, to wit: electronically filed tax returns.

THE SCHEM E AND ARTIFICE



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It was part of the scheme a nd artifice that Defendant TRACEY FERGERSONwould obtain the names and Social Security numbers of individuals.

4. It was further part of the scheme and artifice that Defendant TRACEYFERGERSON would and did provide names and Social Security numbers to DefendantLORETTA FERGERSON for purposes of filing false IRS F orms 1040 and 1040A U.S. IndividualIncome Tax Returns with the IRS.

5. It was further part of the scheme and artifice that D efendant LORETTAFERGERSON would and did electronically file false tax returns with the IRS using the nam es andSocial Security numbers provided by D efendant TRACEY FERGERSON.

6. It was further part of the scheme and artifice that D efendant LORETTAFERGERSON would and did apply for and obtain refund anticipation loans from HS BC and SantaBarbara B ank and Trust based on the false tax returns electronically filed with the IRS.

7. It was further part of the scheme and artifice that D efendants LORETTAFERGERSON would and did cause HSB C and S anta Barbara Bank and T rust to transfer refundanticipation loan m onies based on the false tax returns electronically filed with the IRS.

THE W IRE COMMU NICATIONS8. On or abou t the dates listed below for each count, within the M iddle D istrict of

Alabama, D efendants LORETTA FERGERSON and TRACEY FERGERSON, for the purposeof executing and attemp ting to execute the scheme and artifice to defraud, and to aid and abe t thesame, transmitted, and caused to be transmitted by means of wire communication in interstate andforeign com merce, writings, signs, signals, pictures, and sounds as described for each coun t below:



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COUNTDATE OFWIRE COMMUNICATION____________OFFENSE _____________________________________SIXTEEN1/17/2007Electronic Tax Return for K.L. in the amount of $4,586SEVENTEEN1/12/2008Electronic Tax Return for D.R. in the amount of $4,716EIGHTEEN1/13/2007Electronic Tax Return for C.P. in the amount of $4,586All in violation of Title 18, United States C ode, Section 1343 .COUNT NINETEEN(Aggravated Identity Theft)The factual allegations contained in Paragraphs 1 through 5 of the IntroductionSection of this Indictment are realleged and incorpora ted herein as if copied verbatim.

2.On or about January 17, 2007, within the Middle D istrict of Alabama, D efendantLORETTA FERGERSON did know ingly transfer, possess, and use a mea ns of identification ofanother person withou t lawful authority during and in relation to the felony offense described abovein Count Sixteen of this Indictm ent, that is, she knowing ly used the name and Soc ial Securitynumber of "K .L .," an actual person, to unlawfully steal and convert to her own use and the use ofothers from the IR S a tax refund having a value of approximately $4,586.

All in violation of Title 18, United Sta tes Code, Sections 1028 A(a)(1), (c)(5).COUNT TWENTY(Aggravated Identity Theft)

1. The factual allegations contained in Paragraphs 1 through 5 of the IntroductionSection of this Indictment are realleged and incorpo rated herein as if copied verbatim.

2. On or about January 12, 2008, within the Middle D istrict of Alabama, D efendantLORETTA FERGERSON did know ingly transfer, possess, and use a mea ns of identification ofanother person withou t lawful authority during and in relation to the felony offense described abovein Count Seve nteen of this Indictment, that is, she knowing ly used the name and Soc ial Security



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number of "D .R.," an actual person, to unlawfully steal and convert to her own use and the use ofothers from the TRS a tax refund having a va lue of approximately $4,716.

All in violation of Title 18, United States Code, Sections 1 028A (a)(1), (c)(5).COUNT TW ENTY-ONE(Aggravated Identity Theft)

The factual allegations contained in Paragraphs 1 through 5 of the IntroductionSection of this Indictment are realleged and incorpora ted herein as if copied verbatim.

2.On or about January 17, 2007, within the Middle D istrict of Alabama, D efendantTRACEY FERGERSON did know ingly transfer, possess, and use a mea ns of identification ofanother person withou t lawful authority during and in relation to the felony offense described abovein Count Sixteen of this Indictm ent, that is, she knowin gly used the name and So cial Securitynumbe r of "K.L .," an actual person, to unlawfully steal and convert to her own use and the use ofothers from the IRS a tax refund having a value of approximately $4,586.

All in violation of Title 18, United States Code, Sections 1028 A(a)(1 ), (c)(5).COUNT TWENTY-TWO(Aggravated Identity Theft)

The factual allegations contained in Paragraphs 1 through 5 of the IntroductionSection of this Indictment are realleged and incorpora ted herein as if copied verbatim.

2.On or about January 13, 2007, within the Middle D istrict of Alabama, D efendantTRACEY FERGERSON did know ingly transfer, possess, and use a mea ns of identification ofanother person withou t lawful authority during and in relation to the felony offense described abovein Count Eighteen of this Indictment, that is, she knowingly used the name and Social



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Security num ber of "C.P.," an actual person, to unlawfully steal and convert to her own use andthe use of others from the IRS a tax refund havin g a value of approxima tely $4,586.

All in violation of Title 18, United States Code, Sections 1 028A (a)(1), (c)(5).

A TRUE BILL:

orepersonLEUR A G . C ANAR YUnited States Attorney

Charles M. E dgar, Jr.Michael BotelerTrial A ttorneysUnited States D epartment of JusticeTax D ivision


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Ferguson Sisters Indicted for Identy Theft, Filing False Tax Returns