RICO Conspirators Responsible For Nationwide Computer Intrusions And Tax Fraud Sentenced To Federal Prison

Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Andi Junior Jacques and Dickenson Elan to federal prison terms for their roles in a RICO conspiracy involving cyber intrusions and millions of dollars of tax fraud. Six co-defendants were previously sentenced for their roles in the offense and one will be sentenced at a later date for his involvement in the conspiracy. See chart below for details.

According to court documents, from 2015 through 2019, the defendants and numerous other conspirators—including a now-deceased conspirator who is referenced in the indictment as RICH4EVER4430—banded together to engage in a sophisticated cybercrime and tax fraud scheme. RICH4EVER4430, Jean-Louis, Jenkins, Michel, Propht-Francisque, and Cherelus used the dark web to purchase server credentials for the computer servers of Certified Public Accounting (CPA) and tax preparation firms across the country. They used those server credentials to remotely and covertly commit computer intrusions and exfiltrate the tax returns of thousands of taxpayers who were clients of those CPA and tax preparation firms.

Jacques, Elan, Jean-Poix, and Jolteus were involved with creating and operating fraudulent tax businesses to file false tax returns in the names of thousands of victims. They also registered preparer tax identification numbers with the Internal Revenue Service (IRS) using the names and information of identity theft victims to make it appear those victims were the individuals who were filing false returns in bulk.

RICH4EVER4430, Jean-Louis, Jenkins, Michel, Propht-Francisque, Cherelus, and other conspirators then partnered with Jacques, Elan, Poix, Jolteus, and others to form an enterprise through which they filed thousands of false tax returns in the names of more than 9,000 identity theft victims. 

The conspirators directed the resulting tax refunds to debit cards and bank accounts they controlled. To make the businesses appear more legitimate, members of the enterprise opened bank accounts in the names of these fraudulent tax businesses to receive fake “tax preparer fees.”

As the RICO conspiracy evolved, members of the enterprise “hijacked” the IRS-issued identification numbers of CPA and tax preparation firms and used those identification numbers to file scores of additional false tax returns. Members of the enterprise filed false self-prepared tax returns using stolen identities as well. Altogether, the enterprise claimed more than $45 million in false tax refunds over approximately four years. The actual loss to the IRS and the United States was estimated to be more than $7 million.

“The recent sentencings of these co-conspirators, highlights the unwavering dedication of IRS-CI and our law enforcement partners in combating cybercrime. Our determination remains resolute in pursuing individuals who exploit technology as a means to commit unlawful activities,” said Tara K. Reed IRS-CI Acting Special Agent in Charge. “These sentences serve as a stark warning to potential wrongdoers that there is nowhere to hide, and IRS-CI will work tirelessly to bring you and your misdeeds to light.”

“This was a milestone investigation for the FBI because of the RICO cybercrime conspiracy,” said FBI Tampa Division Special Agent in Charge David Walker. “It underscores the evolution of the cyber threat and how criminals are learning cyber tradecraft in an attempt to advance their criminal enterprises. However, this case also demonstrates how the FBI and our law enforcement partners are evolving our approach to investigations and prosecutions to continue to successfully disrupt cyber gangs.”

This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation in Orlando, with assistance from the FBI Miami and IRS-CI  Minnesota. It was prosecuted by Assistant United States Attorneys Emily C. L. Chang, John M. Gardella, William S. Hamilton, Dana E. Hill, and Special Assistant United States Attorney Matthew Del Mastro.