After a two- year investigation, the Philadelphia District Attorney’s Office Special Investigations Unit (SIU) along with the U.S. Department of Homeland Security Office of Inspector General busted a tax fraud enterprise that has operated for several years and stolen thousands of dollars of taxpayer money.
The ringleader, 38-year-old Kenneth Davidson, is a corrections officer at SCI Graterford who moonlighted as a part-time, seasonal tax professional at H&R Block. Unbeknownst to H&R Block, Davidson used his position to file fraudulent tax returns and obtain multiple refunds worth thousands of dollars. Davidson would rely on his co-conspirators Yvonne Williams, Ahmad Gray, and Cardell Jackson to provide names, dates of birth, and social security numbers of stolen identities or friends. Herbert Carter was one such friend who provided his information. An intermediary would create fraudulent W-2 forms that Davidson would use to file the bogus tax returns and obtain tax refunds that were transferred to H&R Block Emerald debit cards or other pre-paid cards. Each member of this fraud ring would then take a cut of the refund as payment for his/her part in the scheme.
The Philadelphia District Attorney’s Office has charged Kenneth Davidson with 104 felony counts including Corrupt Organization, Dealing in Proceeds of Unlawful Activities, Forgery, and Theft and also several misdemeanors. He was arrested and arraigned and his next court date is scheduled for February 14, 2014 in courtroom 406.
Arrangements are being made for the surrender of the other co-defendants who include:
• Yvonne Williams who is charged with 63 felony counts including Corrupt Organization, Dealing in Proceeds of Unlawful Activities, Forgery, and Theft and also several misdemeanors.
• Ahmad Gray who is charged with 29 felony counts including Corrupt Organization, Dealing in Proceeds of Unlawful Activities, Forgery, and Theft and also several misdemeanors.
• Cardell Jackson who is charged with 25 felony counts including Corrupt Organization, Dealing in Proceeds of Unlawful Activities, Forgery, and Theft and also several misdemeanors.
• Herbert Carter who is charged with 8 felony counts including Dealing in Proceeds of Unlawful Activities, Forgery, and Theft and also several misdemeanors.
The District Attorney’s Office would like to thank H&R Block for its support in investigating this tax fraud scheme. This case is being prosecuted by ADA Michael J. Bonner and DA Investigator Kristina Crosby.
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