A former D.C. official pleaded guilty on Jan. 5 to his role in a plot to file at least 12,000 fraudulent tax returns in order to claim the refunds.
Marc A. Bell, of Bowie, Maryland, admitted on Jan. 5 to being part of a network of more than 130 people seeking to defraud the federal government of $40 million through the fake returns.
From 2005 to 2013, Bell was as a program manager, officer and placement expeditor at the city's Department of Youth Rehabilitation Services and used the agency's database to steal the information of at least 645 delinquent youth housed in DYRS.
Bell then gave the information to other participants in the wide-ranging network to file 1,160 fraudulent tax returns, claiming more than $4.4 million in refunds, for which he compensated.
"Mr. Bell was a public servant who was trusted to serve the taxpayers of the District of Columbia," said Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation's Washington office.
"He violated that trust by stealing the identities of at least 645 youth and then passing the information to his partners in crime who filed over 12,000 federal income tax returns claiming refunds of over $40 million. Aside from the terrible harm done to the Government by receiving over $4 million in refunds before the scam was stopped, Mr. Bell has caused immeasurable harm to the financial well-being of the youth whose identities he stole. "
Department of Justice officials said the Treasury issued more than 700 checks totaling $2.4 million in refunds to DYRS youth whose information Bell stole.
Bell pleaded guilty to conspiracy to defraud the government with respect to claims; aiding and abetting in the filing of fictitious or false claims; and aiding and abetting fraud and related activity in connection with identification documents for his role in the scheme.
He faces a maximum sentence of up 30 years for the combined charges and will pay the IRS $1.97 million in restitution.
DOJ officials said Bell was one of 15 participants who have pleaded guilty for their role in the scheme, which ran from 2005 to 2013 and involved the theft of personal information from "the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners."
The refunds listed more than 400 addresses across Virginia, Maryland and D.C.
