A Virginia man pleaded guilty in federal court on March 7 for his role in a massive tax fraud scheme to net $42 million in bogus refunds.
Bradley King, 35, of Fredericksburg, pleaded guilty to conspiracy to defraud the United States, theft of public money and aiding and abetting in fraud and related activity.
King is one of 19 conspirators who have pleaded guilty to a scheme to file more than 12,000 false tax returns across Washington, D.C., Virginia and Maryland, some with stolen identity information.
The fraud network is thought to have included more than 130 people and lasted from 2005 to 2013. The fraudsters often stole personal information for elderly residents on public assistance to file the returns. In one instance a D.C. official stole information from a Department of Youth Rehabilitation Services database to file fake returns.
Prosecutors said King provided his information to the network to file bogus returns beginning in 2008 and recruited others to allow their information to be used in 2010. He later split the proceeds of the fake refunds, sometimes channeling the money through separate bank accounts, and ultimately sold refund checks in June 2015.
King faces a maximum of 35 years in prison as part of a plea deal, including paying $493,436 in restitution to the IRS, as well as forfeit $5,400. He is scheduled to be sentenced on May 18.
