Feds freeze 1,000 student accounts at Florida college, charge 21 in $1.9M tax-refund scheme
In the latest example of claimed rampant fraud in federal income tax-refund applications, federal authorities have frozen more than 1,000 student financial services accounts at a single Florida college.
They say at least some of the Higher One Inc. accounts were being used to funnel fraudulently obtained tax refunds to identity thieves, with the students whose accounts were used getting a cut of the refunds, the Miami Herald (sub. req.) reports.
A total of 21 individuals are facing related criminal charges, including 18 current or former students at Miami-Dade College, according to United States Attorney Wifredo Ferrer.
“Today’s takedown is further evidence of the insidious and widespread nature of stolen identity tax refund fraud,” Ferrer said in a FBI press release.
“That this crime has infiltrated life at a college is alarming,” Ferrer continued. “As a community, we cannot permit this type of crime to negatively affect young people and their prospects while in college. In addition to prosecuting those who fraudulently use the identities of others for financial gain, we will be working closely with Miami Dade College—and any other educational institution—to help educate students that selling the use of their student bank accounts to facilitate fraud is criminal and carries serious consequences.”
See also:
ABAJournal.com: “Amidst ‘epidemic’ of tax-refund claims using stolen IDs, feds charge 25 in $36M fraud”
ABAJournal.com: “Owners of mom-and-pop store take plea in $24M check-cashing case; tax refunds were key”
60 MInutes (CBS News): “Biggest IRS scam around: Identity tax refund fraud”
