FOR FURTHER INFORMATION CONTACT
AUSA VICKIE E. LEDUC or
MARCIA MURPHY at 410-209-4885
JANUARY 29, 2007
FOR IMMEDIATE RELEASE
DEFENDANT SENTENCED IN TAX FRAUD SCHEME
Sought More Than $200,000 in Tax Refunds
Stole Identity Information Relating to Foster Children
BALTIMORE, Maryland - Clarenth Miles, age 31, of Edgewood, was sentenced today to 15 months in prison followed by three years of supervised release for conspiring to defraud the IRS, announced United States Attorney for the District of Maryland Rod J. Rosenstein. United States District Judge William M.. Nickerson also ordered Clarenth Miles to pay restitution to the IRS in the amount of $102,054 and to pay over $35,000 in restitution to two banks that issued refund anticipation loans based on fraudulent tax returns.
According to the plea agreement provided to the court, from March 2000 through May 2002, Clarenth, her husband Antonio Miles, and her friend Cantrice Moore, prepared and filed federal income tax returns seeking refunds that included fabricated wages, tax withholding amounts and deductions. Some included false schedule C business income, dependents, and earned income credits. At least one reported false alimony payments. The defendants filed false returns in their own, and other persons’ names. The investigation revealed that the defendants filed false federal individual income tax returns seeking refunds totaling more than $200,000. The IRS issued more than $100,000 in tax refunds as a result of the conspiracy.
Clarenth Miles was employed by the State of Maryland, Department of Social Services, Family Services section, in Baltimore City, and had access to the files of foster children. She stole the identification of several foster children, provided the identity information to Cantrice Moore, and both Miles and Moore filed false tax returns in the names of the foster children or falsely listed the foster children as dependents. Judge Nickerson found that Clarenth Miles had abused a position of trust in committing her offense.
Antonio Miles, age 36, of Edgewood, pled guilty to the conspiracy and to identity theft charges, and was sentenced on January 16, 2007 to one year and one day in prison followed by three years of supervised release. He was also ordered to pay more than $60,000 in restitution to the IRS and the two victim banks. Cantrice Moore, age 32, also of Baltimore, pled guilty to the same charges and was sentenced on August 31 to 3 years of probation, with the first 6 months to be spent in home detention with electronic monitoring. Judge Nickerson also ordered her to do 200 hours of community service, recommending that she perform that service at a homeless shelter. The fine was waived, however, Moore was ordered to pay $52,567 in restitution.
United States Attorney Rod J. Rosenstein praised the investigative work performed by the Internal Revenue Service - Criminal Investigation. Mr. Rosenstein also thanked Assistant U.S. Attorney Jonathan Biran, who is prosecuting the case.