Tax Fraud Scheme Lands St. Croix Resident Behind Bars

A Multi-Year Scheme to Defraud the United States Government

A 52-year-old resident of St. Croix has been sentenced to ten months in federal prison for her role in a multi-year tax fraud scheme that defrauded the United States government out of tens of thousands of dollars.

The Scheme: Using Stolen Identities to File False Tax Returns

According to court documents, Patricia Henry was convicted of conspiracy to defraud the United States after a five-day jury trial last year. The scheme, which ran from 2010 to 2013, involved using stolen identities to file false tax returns and obtain refunds from the Internal Revenue Service (IRS).

• Prosecutors alleged that Henry aided others in filing fraudulent tax returns using genuine Social Security numbers and personal identifying information, but with falsified income and withholding amounts.
• The scheme netted her $18,986 in illegal refunds, which she received through a series of bank deposits.

Daughter Also Involved in the Scheme

Henry’s daughter, Phiona Henry, was also involved in the scheme and pleaded guilty to conspiracy to defraud the United States earlier this year. She was sentenced to eight months in federal prison and ordered to pay restitution to the IRS.

Investigation and Prosecution

The case was investigated by the Internal Revenue Service-Criminal Investigations (IRS-CI) and is being prosecuted by Assistant U.S. Attorney Melissa Ortiz. The investigation, which spanned years, dismantled a massive stolen identity refund fraud scheme that affected not only the Virgin Islands but also other jurisdictions.

Sentence and Restitution

In addition to her prison term, Henry was ordered to serve three years of supervised release and pay a mandatory special assessment fee of $100. She must also repay the IRS for the fraudulent refunds she received.

A Significant Victory in Combating Financial Crime

The sentencing marks a significant victory in the ongoing efforts by law enforcement agencies to combat financial crime in the Virgin Islands. The case serves as a reminder that those who engage in fraudulent activities will be held accountable and face serious consequences, including prison time and financial penalties.