Member Filed For 300 Tax Refunds Through Her CU Account
MONTGOMERY, Ala. – A member of Alabama State Employees CU was sentenced to 21 months in prison and ordered to pay $1.4 million in restitution for filing more than 300 separate federal tax refunds through her credit union account.
Betty Washington conspired with several others to use stolen identities to file false income tax returns claiming refunds, according to authorities. When a bank shut down their scheme they opened an account in Washington’s name at Alabama State Employees.
Over the course of several months, more than 300 false refunds were deposited into these bank accounts, totaling more than $1.4 million in fraudulent refunds. To distribute the fraudulent refunds, Washington wrote checks and obtained official checks payable to various co-conspirators and associates and withdrew refund money in cash as well. She retained a portion of the refunds for herself.
Two co-conspirators were also convicted in the scheme, which was investigated by the Internal Revenue Service and the Department of Justice.