Federal prison inmate Jabari Laquan Marshall devised the fraudulent tax withholding scheme. In 2014, Marshall gave co-defendant Jalen Tony Henry false documents that showed the sale of certain trade secrets for $25 million. To make those false documents appear more credible, Marshall used social security numbers of two other persons. Henry filed an amended tax return for tax year 2014, using the false documents and claiming that $5.6 million in federal income tax had been withheld.
Henry requested a tax refund of $1,359,64 and received a refund of $1,439,039, which was deposited into his bank account. Because of the suspicious nature of the transaction, Henry’s bank account was frozen, and the IRS successfully recovered $1,433,971 of the refunded amount. Marshall and Henry pleaded guilty to charges of theft of government money and could face up to 12 years in prison.