Crime & Courts

California man sentenced in Anchorage for his scheme to file false income tax returns

A California man was sentenced in federal court in Anchorage on Friday to nearly eight years in prison for his scheme to file false individual income tax returns to get refunds, according to a statement from the office of the U.S. attorney for the District of Alaska.

Demetrick Ruffin, 43, had pleaded guilty in April to one count of conspiracy to commit wire fraud and one count of aggravated identity theft in the case, the statement said.

According to court documents filed by federal prosecutors, Ruffin was incarcerated in Los Angeles during part of the conspiracy but continued to direct it from jail. They described him as "the mastermind behind the refund scheme."

Here's how the scheme worked, according to the prosecutors: Ruffin and his "co-conspirators" obtained identity information from individuals, including their names, dates of birth and Social Security numbers. They then used those identities to prepare W-2 forms that contained fabricated wages. They took those forms to H&R Block and Liberty Tax locations in Anchorage, Eagle River and Palmer, as well as locations in California.

The false returns — filed in 2009 and 2010 — requested refunds between $1,400 and $8,600, said the statement from the federal prosecutor's office in Alaska.

In some cases, the group claimed additional dependents to increase the refunds.

In many cases, they also applied for refund anticipation loans and requested the funds be downloaded onto payment cards so they could have instant access to the money even if the Internal Revenue Service later rejected the returns, the statement said.

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Federal prosecutors identified the identity-theft victims only by their initials. Chloe Martin, spokeswoman for the federal prosecutor's office in Alaska, said she could not disclose whether any of them lived in Alaska.

In the sentencing memorandum filed by federal prosecutors in the case, they wrote that Ruffin "used these identities knowing that they belonged to real people and knowing that he did not have their permission to do so."

"As a result of Ruffin's actions multiple innocent taxpayers have had to endure years of financial and emotional turmoil," they wrote. "Their credit ratings have been obliterated, and their abilities to do everything from buy a house to secure a job have been severely compromised by this defendant's actions."

Ruffin’s attorney, Jeffrey Robinson, said in a statement that federal prosecutors had asked U.S. District Court Judge Timothy Burgess to impose a 10-year sentence “and to hold Mr. Ruffin responsible for losses it was unable to prove after multiple evidentiary hearings.”

"We are satisfied that Judge Burgess weighed the complicated evidence in this case, and properly imposed a sentence consistent with Mr. Ruffin's acceptance of responsibility and the actual or intended loss of the conspiracy," he wrote.

Burgess also sentenced Rufin to serve three years on supervised release after serving 95 months in prison. A later hearing will determine the amount of restitution Ruffin must pay.

His "co-conspirators" were already sentenced, the statement said.

Jameane Bolton-Williams, of Los Angeles, was sentenced to 82 months in prison and ordered to pay restitution of $91,927.65.

Joe Douglas, of Los Angeles, was sentenced to 57 months in prison and ordered to pay $43,043.55.

Lucille Stansberry, also of Los Angeles, was sentenced to 36 months and one day in prison and ordered to pay $48,619.95.

Here are some tips from the IRS about how you can reduce your risk of becoming a victim of tax-related identity theft:

• Always use strong passwords and security software with firewall and anti-virus protections.

• Recognize and avoid phishing emails, threatening calls and texts from thieves posing as legitimate organizations such as your bank, credit card companies and the IRS.

• Do not click on links or download attachments from unknown or suspicious emails.

• Don't routinely carry your Social Security card.

• Make sure your tax records are secure.

Tegan Hanlon

Tegan Hanlon was a reporter for the Anchorage Daily News between 2013 and 2019. She now reports for Alaska Public Media.

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