Long Beach Woman Charged in 'Operation Refund Racket'

Nassau County District Attorney Kathleen Rice announced Thursday the results of “Operation Refund Racket,” a multi-agency investigation that has resulted in the arrest of seven people, including a Long Beach resident, for their participation in a ring that used willing accomplices and stolen identities to file fraudulent tax refunds and steal more than $60,000 in taxpayer money.

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The investigation was conducted by the DA’s Office, the United States Postal Inspection Service (USPIS), and the New York State Department of Taxation and Finance, Buffalo Criminal Investigation Division (NYSDTF). The investigation is ongoing and arrest warrants have been issued for five more suspects.

Rice said the investigation began in February 2012 when a member of the USPIS became suspicious after noticing that a high volume of money orders were being repeatedly purchased with pre-paid debit cards at the Hempstead Post Office by the same people. The inspector notified the DA’s Office, which began an investigation in March 2012.

Through the course of the investigation, it was discovered that Christopher Curry, 40, of Westbury, was the leader of a ring of individuals electronically filing false tax returns that contained false employer information and inflated or incorrect wages. In many cases, the taxpayer never worked for the employer at all and the entire W-2 form was a fake. Many of the tax filers were willing participants, but stolen identities were also used to file returns. Curry filed most of the returns himself electronically or explained the scam to others and took a percentage of the refunds.

In total the ring filed more than 30 tax returns for the 2011 tax year in New York and South Carolina, and received more than $60,000 in state and federal tax refunds. That money was loaded onto prepaid debit cards which were used to purchase money orders, making the cash nearly untraceable.

The investigation also revealed that some of the defendants had planned to continue filing returns this year in New York, South Carolina and Florida by filing false returns using the stolen identities of nursing home residents and prisoners.

Curry was arrested January 17 and is charged with Grand Larceny in the Second and Third Degrees, six counts of Offering a False Instrument for Filing in the First Degree, 12 counts of Falsifying Business Records in the First Degree, Scheme to Defraud in the First Degree, Conspiracy in the Fifth Degree, and Petit Larceny. He faces up to 15 years in prison and is due back in court April 17. He is represented by Greg Grizopoulos, Esq.

Also charged is:

• Deanna Welsh, 25, of Long Beach. Arrested April 10 and charged with Grand Larceny in the Third Degree, Falsifying Business Records in the First Degree, Scheme to Defraud in the First Degree, and Conspiracy in the Fifth Degree. She faces up to seven years in prison and is due back in court April 12.

• Toshonda Blunkumsee, 34, of Hempstead. Arrested April 9 and charged with Grand Larceny in the Third Degree, Scheme to Defraud in the First Degree, two counts of Falsifying Business Records in the First Degree, and Conspiracy in the Fifth Degree. She faces up to seven years in prison and is due back in court April 12.

• Chrissa Brown, 24, of Hempstead. Arrested April 9 and charged with Grand Larceny in the Third and Fourth Degrees, Offering a False Instrument for Filing in the First Degree, Falsifying Business Records in the First Degree, Scheme to Defraud in the First Degree, and Conspiracy in the Fifth Degree. She faces up to seven years in prison and is due back in court April 12.

• Jason Jordan, 33, of Hempstead. Arrested April 9 and charged with Grand Larceny in the Third and Fourth Degrees, Offering a False Instrument for Filing in the First Degree, Falsifying Business Records in the First Degree, Scheme to Defraud in the First Degree, and Conspiracy in the Fifth Degree. He faces up to seven years in prison and is due back in court April 12.

• Ramona Wright, 42, of Roosevelt. Arrested April 10 and charged with Grand Larceny in the Third Degree, Falsifying Business Records in the First Degree, Scheme to Defraud in the First Degree, and Conspiracy in the Fifth Degree. She faces up to seven years in prison and is due back in court April 12.

• Mildred Curry, 39, of Westbury. Issued a desk appearance ticket and charged with Scheme to Defraud in the First Degree and Conspiracy in the Fifth Degree. She faces up to four years in prison and is due back in court April 17.

“Today’s arrests should serve as a clear warning to criminals who look at tax season as another opportunity to line their pockets with stolen cash,” Rice said. “Inter-agency cooperation was essential to taking this ring down and I want to thank the Postal Inspectors and the State Tax Department for their invaluable contributions to this investigation.”

“Postal Inspectors along with their law enforcement counterparts are vigilant in the pursuit of those individuals who use the US Mail to file fraudulent tax returns, preying on the public and other state and local agencies,” said Acting Inspector-In-Charge Richard T. Vignogna.

“I commend District Attorney Rice for her ongoing pursuit and prosecution of tax evaders - a shared priority for the State Tax Department," said New York State Commissioner of Taxation and Finance Thomas H. Mattox. “Operation Refund Racket shows, once again, that cooperation among law enforcement organizations can and will bring to justice those who would attempt tax fraud.”

DA Rice also thanked the Hempstead Police Department for their assistance in the investigation.Assistant District Attorneys Meghan Lavine and Andrew Weiss of the Economic Crimes Bureau are prosecuting the cases for the DA’s Office.

The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.

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