Financial Crime Prosecution and Sentencing in USVI: Patricia Henry Found Guilty of Conspiracy to Defraud the United States

A Significant Win for Federal Authorities

A St. Croix resident, Patricia Henry, has been convicted of conspiracy to defraud the United States after a five-day trial. The 52-year-old was found guilty of participating in a scheme to obtain money from the US treasury by fraudulently acquiring federal income tax refunds between 2010 and 2013.

The Scheme

According to evidence presented during the trial, Henry, along with her daughter Phiona Henry and others, illegally obtained personal identifying information to electronically file falsified tax returns for the years 2009 through 2012. The scheme involved filing tax returns in individuals’ true names and social security numbers but falsifying income earned, tax withholding amounts, credits, and other information to claim refunds they were not entitled to.

The Results

The scheme resulted in three tax returns being filed in Henry’s name, with a total of $29,295 designated for her and Phiona Henry’s bank accounts. Evidence showed that:

• $8,918 was deposited into Patricia Henry’s account
• $10,068 was deposited into Phiona Henry’s account
• An additional $106,382 was deposited into Phiona’s account

Investigation and Prosecution

Phiona Henry had already pleaded guilty to the fraud scheme in May 2019 and is pending sentencing. The prosecution of this massive stolen identity refund fraud scheme is the result of years of investigative work by the Internal Revenue Service-Criminal Investigations.

The case was investigated by the Internal Revenue Service, Criminal Investigations, and is being prosecuted by:

• Assistant US Attorneys Alphonso Andrews Jr.
• Melissa Ortiz

Sentencing

Henry faces up to 10 years in prison on the conviction, plus a fine of up to $250,000.