On September 29, 2014, Stephen Galender Allison, 61, of Lakeway, Texas, was sentenced by U.S. District Court Judge Douglas Rayes to 30 months’ imprisonment and was ordered to pay $813,555 in restitution to the Internal Revenue Service (IRS) and to the tax authorities of Arizona and California. Allison previously pleaded guilty to the crime of False Claims.
Between 2007 and 2012, Allison filed a total of 29 fraudulent federal and state tax returns claiming a total of $1,113,577 in false refunds and generating $813,555 in actual refund payments. In these returns, Allison falsely claimed that the filer had earned substantial wages, that substantial taxes had already been withheld from the filer’s paycheck, and that the filer was entitled to a large refund based on these alleged tax withholdings. In addition to filing several of these false tax returns on his own behalf, Allison also filed similar returns on behalf of a fictitious persona and on behalf of several acquaintances whose identities he had stolen.
The investigation in this case was conducted by Internal Revenue Service – Criminal Investigation.