Joe Ryan reports that 29 year-old Steven Nelson of the Bronx pleaded not guilty in a Newark court today and remains free on bail. Nelson had been indicted by a federal grand jury in July on a tax refund scheme that not only involved ID theft, but used the identities of pediatric cancer patients to claim child tax credits on the bogus returns. The heart of the scheme, as described in the press release announcing the indictment:
Between February 2006 and March 2009, Nelson allegedly agreed with individuals identified in the Indictment as J.E. and A.F. to profit by using fraudulently obtained names, dates of birth, and Social Security Numbers to file false federal income tax returns that claimed tax refunds to which they were not entitled.
Nelson, A.F., and others allegedly obtained names and Social Security Numbers of adults from records at doctor’s offices, hospitals, nursing homes, health clinics, government offices, and other places in New York City where A.F. and others either worked or had access to such records. Nelson and others also allegedly obtained similar information belonging to minor patients from the records of pediatric cancer and other hospitals and health clinics in New York City.
Nelson prepared false federal income tax returns in the names of the adults whose information he had stolen, and used the personal identifiers of the minor patients on those false returns in support of fraudulently claimed eligibility for EICs or Child Tax Credits.
I wonder how many of those medical facilities reported the breaches or notified those whose records were stolen and misused. I also wonder how Nelson is alleged to have obtained those records, but the U.S. Attorney’s offices almost never release that information.
This makes me sick. Were they depending on the kids to die so they would have use of the SSNs forever. We have to make a systemic change to SSNs of those who are children and those who are older and deceased so that they cannot be food for pigs that grunt around these wards in hospitals.