Monroeville Woman Sentenced to More Than Six Years in Federal Prison for Identity Theft, Tax, Wire Fraud Charges

Alice Mobley of Monroeville, Alabama, was sentenced in the United States District Court for the Southern District of Alabama in Mobile, Alabama to 75 months’ imprisonment. Mobley was also ordered to pay $720,067.07 in restitution to the United States Internal Revenue Service. Additionally, the court ordered the forfeiture of $593,949.77 to the United States. Mobley had pled guilty to one count of conspiring to defraud the United States, one count of assisting in the filing of false tax returns, one count of wire fraud and one count of aggravated identity theft.

The charges were in connection with the filing of false tax returns through Mobley’s business, Preyear Tax and Check Cashing LLC, located in Monroeville with offices in Thomasville and Atmore, as well as two other businesses with which Mobley was involved, Kimble and Preyear Tax Service in Greenville, Mississippi, and Henry’s Tax Service in Longview, Texas. The aggravated identity theft count to which Mobley pled guilty involved the filing of a tax return using the name and Social Security number of a person who had not given her permission to file tax returns on his behalf, falsely claiming that the information on the returns came from him, and falsely claiming that he had authorized her to file the returns. The indictment also charges that Mobley then kept the tax refund fraudulently obtained from the United States by that returns.

Defendant Alice Mobley, at all pertinent times, owned a controlling interest in and operated Preyear’s Tax and Check Cashing Service LCC (PTS) in Monroeville, Alabama, with locations in Atmore and Thomasville, Alabama. She also had ownership interests in and was involved in the operation of Kimble’s and Preyear’s Tax and Check Cashing Services, Greenville, Mississippi; and Henry’s Tax Service in Longview, Texas. Alice Mobley knowingly conspired and agreed with workers of these businesses in knowingly filing fraudulent tax returns.

In furtherance of this conspiracy, she purchased identifying information for children and other dependants to use as the basis for tax deductions as well as the earned income credit, the child dependant care credit, and other credits on tax returns in the names of people who had no relation to the dependants. Some of Mobley’s clients were aware of the falsehoods on the tax returns filed in their name, others were not. In addition, Mobley filed returns in the names of individuals without their knowledge or permission and kept the refund associated with those returns. Mobley also added false items to client returns without the client’s knowledge or consent and kept the additional refunds associated with the false items. Mobley would file said returns using a computer, thereby causing an interstate communication with each fraudulent return.

The case was investigated by agents of the Mobile Field Office of the Federal Bureau of Investigation; Criminal Investigation, Internal Revenue Service; the Office of Inspector General of the Department of Housing and Urban Development; and the 35th Judicial Circuit Task Force, Monroeville, Alabama. United States Attorney Kenyen R. Brown stated, “This prosecution shows that the Department of Justice understands its duty to work to ensure that honest taxpayers are not taken advantage of and to protect taxpayers from those who claim to be bona fide tax return preparers, but in reality prepare and file fraudulent returns. This was a great day for the honest taxpayers of the Southern District. We have cut off the head of a widespread false tax preparation enterprise, thanks to the cooperation of the 35th Judicial Circuit Task Force, the FBI, the IRS, and the Office of Inspector General of the Department of Housing and Urban Development. Others who are considering using a tax return preparation business to defraud honest American taxpayers should be aware that they will face severe consequences. FBI Mobile Special Agent In Charge Matt Chapman stated, “The success of this investigation is a reflection of what can be achieved when law enforcement cooperates, enhancing each others’ resources to target this kind of illicit behavior.” SAC Chapman further stated, “These are difficult financial times for all of us and our efforts to protect the public and government from these predators is a priority.”

IRS Special Agent in Charge Rodney E. Clarke stated, “As we approach the conclusion of the 2012 tax filing season, taxpayers need to be cautious about selecting a return preparer, as the taxpayers are responsible for paying back any fraudulent refunds, along with interest and penalties, if a fraudulent return is filed with the IRS. I also want to warn individuals who market themselves as legitimate tax return preparers but act with the intent to defraud their customers and the U.S. Treasury. IRS Criminal Investigation operates year-round to uncover refund fraud.”

The case was prosecuted by Assistant U.S. Attorneys Gregory Bordenkircher, Alex Lankford, and Charles Baer on behalf of the United States Attorney’s Office for the Southern District of Alabama.