DataBreaches.Net

Menu
  • About
  • Breach Notification Laws
  • Privacy Policy
  • Transparency Report
Menu

Update: Final Defendants Sentenced to Federal Prison for Participating in Identity Theft Scam

Posted on October 30, 2013 by Dissent

On September 30, there was an update from the IRS’s Criminal Investigation unit to an insider breach previously reported on this blog:

 The final two defendants charged in relation to an identity theft scam that used identities stolen from the Los Angeles County Department of Public Social Services to file fraudulent tax returns were sentenced today to federal prison.

Michael Williams, 43, of Palmdale, was sentenced to 33 months imprisonment; Mike Niko, 35, of Los Angeles, was sentenced to 15 months imprisonment. The defendants were further ordered by United States District Judge Dale S. Fischer to pay restitution to the government of $787,086 and $104,662, respectively.

The defendants previously sentenced in this case are:

  • Thomas Marshall, 38, of Lancaster, was sentenced in April to 57 months in prison and ordered to pay restitution in the amount of $1,245,637;
  • Mao Niko, 41, of Lynwood, was sentenced in April to 24 months in prison and ordered to pay restitution in the amount of $285,102;
  • Veronica Niko, 37, of Lancaster, was sentenced in July to 18 months in prison and ordered to pay restitution in the amount of $357,705.

According to documents filed with the court, from May 2008 through July 2010, co-defendant Thomas Marshall, along with co-conspirators Michael Williams, Veronica Niko, Mao Niko, and Mike Niko conspired to defraud the United States by using the personal identifying information of various individuals to file false tax returns claiming fraudulent tax refunds.

Veronica Niko stole names and social security numbers from the California Department of Public Social Services (DPSS) computer system. Marshall then gave the personal identifying information obtained from Veronica and others to co-conspirators to file fraudulent tax returns with the IRS. The fraudulent returns claimed the First Time Homebuyer Credit and/or Earned Income Credit, earning defendants as much as $8,000 per return, even though the individuals whose identities were used did not authorize or know about the filings.

Purporting to be tax preparers, Williams, Mao Niko and Mike Niko established bank accounts for the purpose of receiving the refunds claimed on the false tax returns. The refunds received were used for their own personal benefit and as compensation for Marshall and other co-conspirators.

All five defendants pleaded guilty to their various roles in the scheme. Defendants Marshall, Williams, Mao Niko, and Mike Niko pleaded guilty to conspiracy to submit false claims to the IRS. Defendant Veronica Niko pleaded guilty to one count of transfer/use of means of identification to commit an unlawful activity. In total, the United States Treasury paid more than $1.245 million in refunds to the defendants in response to fraudulent returns filed as part of the scheme.

This investigation was conducted by IRS Criminal Investigation special agents.

Related posts:

  • IRS’s Top 10 Identity Theft Prosecutions
  • IRS’s Top Ten Identity Theft Prosecutions
  • The Secret IRS Files: Trove of Never-Before-Seen Records Reveal How the Wealthiest Avoid Income Tax
  • Ringleader of $24 Million Stolen Identity Tax Refund Fraud Ring Sentenced to 15 Years in Prison
Category: Government SectorID TheftInsiderU.S.

Post navigation

← App For Doctors Sends Unencrypted Data
Hosting Service MongoHQ Suffers Major Security Breach That Explains Buffer’s Hack Over The Weekend →

Now more than ever

"Stand with Ukraine:" above raised hands. The illustration is in blue and yellow, the colors of Ukraine's flag.

Search

Browse by Categories

Recent Posts

  • France issues press statement about arrest of ShinyHunters members
  • Patients Allege Home Delivery Pharmacy Failed to Timely Notify Them of Data Breach
  • Hackers breach Norwegian dam, open valve at full capacity
  • Patient death at London hospital linked to cyber attack on NHS
  • ShinyHunters and team members arrested in France (2)
  • Texas Enacts Liability Shield From Punitive Damages for Certain Small Businesses That Adopt Cybersecurity Programs
  • Dublin ETB fined €125,000 for data protection breaches
  • From $5,000 to $800,000: Days Apart, OCR Security Settlements Show Puzzling Math
  • Liberty Township in Ohio has recovered its network after a ransomware attack
  • Marquette County Medical Care Facility discloses data breach

No, You Can’t Buy a Post or an Interview

This site does not accept sponsored posts or link-back arrangements. Inquiries about either are ignored.

And despite what some trolls may try to claim: DataBreaches has never accepted even one dime to interview or report on anyone. Nor will DataBreaches ever pay anyone for data or to interview them.

Want to Get Our RSS Feed?

Grab it here:

https://databreaches.net/feed/

RSS Recent Posts on PogoWasRight.org

  • How Internet of Things devices affect your privacy – even when they’re not yours
  • Sky Views Personal Data as a Potential Weapon in IPTV Piracy War
  • Florida Used a Nationwide Surveillance Camera Network 250 Times To Aid in Immigration Arrests
  • Federal Court Strikes Down HIPAA Reproductive Health Care Privacy Rule
  • The Markup caught 4 more states sharing personal health data with Big Tech
  • Privacy in the Big Sky State: Montana’s Consumer Privacy Law Gets Amended
  • UK Passes Data Use and Access Regulation Bill

Have a News Tip?

Email: Tips[at]DataBreaches.net

Signal: +1 516-776-7756

Contact Me

Email: info[at]databreaches.net

Mastodon: Infosec.Exchange/@PogoWasRight

Signal: +1 516-776-7756

DMCA Concern: dmca[at]databreaches.net
© 2009 – 2025 DataBreaches.net and DataBreaches LLC. All rights reserved.