Financial Crime World

Financial Crime Sentencing Concludes for Two Virgin Islands Residents Involved in Multi-Defendant Tax Fraud Scheme

St. Croix, USVI - A Significant Victory for Law Enforcement and Tax Authorities

In a major success for law enforcement and tax authorities, two individuals from the Virgin Islands have been sentenced in federal court for their roles in a massive 10-defendant tax fraud scheme.

Lynell Hughes of St. Croix Receives Sentence

Lynell Hughes, who pleaded guilty to Conspiracy to Defraud the United States, was ordered to serve nine months in prison followed by three years of supervised release. Additionally, she must pay restitution of $90,149.71 to the Internal Revenue Service (IRS) for falsely claimed tax returns deposited into her bank accounts.

Nicolette Alexander of St. Thomas Receives Sentence

Nicolette Alexander, who also pleaded guilty to Conspiracy to Defraud the United States, was sentenced to three years of probation and ordered to pay $17,537 in restitution to the IRS.

The Scheme: Stealing Money from the US Treasury

According to court documents, Hughes and Alexander participated in a scheme from January 2011 to July 2012 that involved stealing money from the US treasury by fraudulently obtaining federal income tax refunds. The scheme worked as follows:

  • Acquiring personal identifying information
  • Using this information to electronically file falsified tax returns with designated bank accounts or debit cards
  • Withdrawing deposited refunds, spending them using debit cards, or transferring them to other accounts for personal use

Investigation and Prosecution

The prosecution of this fraud scheme is the result of years of investigative work by the Internal Revenue Service- Criminal Investigations (IRS-CI), which identified and dismantled a massive stolen identity refund fraud scheme perpetrated in the Virgin Islands and elsewhere.

Assistant U.S. Attorney Melissa Ortiz prosecuted the case, which was investigated by the IRS-CI. The sentencing marks the conclusion of the criminal proceedings for two of the nine defendants who pleaded guilty to their roles in the scheme.

Remaining Defendant Sentenced

The remaining defendant, Jacinta Gussie, was found guilty after a six-day trial and sentenced to 3.75 years in prison and ordered to pay $44,561.11 in restitution.

Conclusion

This case highlights the importance of effective law enforcement and tax administration in preventing and prosecuting financial crimes in the US Virgin Islands.