Case 2:11-cr-00048-MEF -CSC Document 1 Filed 03/23/11 Page 1 of 11

FiLED
MAR 232011

IN THE DISTRICT COURT OF THE UThHTED STATES

FOR THE MIDDLE DISTRICT OF ALABAMA CLERK
NORTHERN DIVISION U. S. DISTRICT COURT
MIDDLE DIST. OF ALA
CR. NO. 'Jic-i- 9'-A1t2'
UNITED STATES OF AMERICA 18 U.S.C. § 286;
18 U.S.C. § 287;
V. 18 U.S.C. § 1343;
18 U.S.C. § 1028A(a)(1), (c)(5).
LORETTA FERGERSON
and
TRACEY FERGERSON INDICTMENT

The Grand Jury charges:

INTRODUCTION

At all times relevant to this Indictment:

Defendant LORETTA FERGERSON was a resident of Montgomery County,

Alabama within the Middle District of Alabama. From on or about January 1, 2005 to on or about

February 8, 2008, Defendant LORETTA FERGERSON owned and operated Fast Tax Cash, a tax

preparation business located in Montgomery County, Alabama.

2. Defendant TRACEY FERGERSON was a resident of the Middle District of

Alabama. Defendants LORETTA FERGERSON and TRACEY FERGERSON were sisters.

3. The Internal Revenue Service ("IRS") was an agency of the United States

Department of Treasury responsible for enforcing and administering the tax laws of the United

States, and collecting taxes owed to the United States.

4. HSBC Taxpayer Financial Services, Inc. ("HSBC") was and is a federally insured

financial institution which issued tax refund anticipation loans to customers in Alabama.

Santa Barbara Bank and Trust was and is a federally insured financial institution

which issued tax refund anticipation loans to customers in Alabama.

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COUNT ONE
(Conspiracy to Defraud the Government with Respect to Claims)

1. The factual allegations contained in Paragraphs 1 through 5 of the Introduction

Section of this Indictment are realleged and incorporated herein as if copied verbatim.

2. Beginning in or about December 2006, and continuing until in or about February

2008, within the Middle District of Alabama and elsewhere, Defendants LORETTA

FERGERSON and TRACEY FERGERSON and others, both known and unknown to the grand

jury, unlawfully and knowingly agreed, combined, and conspired with others and each other to

defraud the United States by obtaining and aiding to obtain the payment and allowance of false,

fictitious, and fraudulent claims.

MANNER AND MEANS

3. To accomplish the objects of this scheme, Defendants LORETTA FERGERSON

and TRACEY FERGERSON used the following manner and means, among others:

4. Defendants LORETTA FERGERSON and TRACEY FERGERSON, and others,

both known and unknown to the grand jury, would and did agree to cause the preparation and filing

of false federal income tax returns with the IRS.

5. Defendant TRACEY FERGERSON would and did obtain the means of

identification of individuals, including their names and Social Security numbers. Defendant

TRACEY FERGERSON would and did provide these means of identification to Defendant

LORETTA FERGERSON for the purpose of causing the preparation and filing of false federal

income tax returns with the IRS.

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Case 2:11-cr-00048-MEF -CSC Document 1 Filed 03/23/11 Page 3 of 11

6. Defendant LORETTA FERGERSON would and did prepare and electronically file

and cause to be prepared and electronically filed false IRS Forms 1040 and 1040A, U.S. Individual

Income Tax Returns.

7. Defendant LORETTA FERGERSON would and did apply for and obtain refund

anticipation loans ('RALs") based on the false tax returns.

8. Defendants LORETTA FERGERSON and TRACEY FERGERSON would and

did cash the fraudulently obtained RAL checks and retain the proceeds.

9. Defendants LORETTA FERGERSON and TRACEY FERGERSON would and

did take steps to conceal the existence of the conspiracy to include creating false records and

documents.

ACTS IN FURTHERANCE OF THE CONSPIRACY

10. To accomplish the objectives of the conspiracy, in the Middle District of Alabama

and elsewhere, and in furtherance thereof, the Defendants, and others, both known and unknown to

the grand jury, committed, among other acts, the following acts in furtherance of the conspiracy:

11. Defendant TRACEY FERGERSON maintained a spiral bound notebook that

contained names and Social Security numbers used in the preparation of false tax returns.

12. Defendant LORETTA FERGERSON prepared and filed and caused to be prepared

and filed false and fraudulent IRS Forms 1040 and 1040A, U.S. Individual Income Tax Returns in

the names of the following individuals, on or about the dates and for the amounts listed below:

Paragraph Name! Date of Act Tax Year Refund Claimed

Initials
13. Loretta 1/13/2007 2006 $2,787
Fergerson

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Paragraph Name! Date of Act Tax Year Refund Claimed

Initials
14. M.K. 1/13/2007 2006 $4,586

15. C.P. 1/13/2007 2006 $4,586

16. W.L. 1/13/2007 2006 $4,586

17. V.J. 1/13/2007 2006 $4,586

18. S.G. 1/13/2007 2006 $4,586

19. V.S. 1/13/2007 2006 $4,536

20. A.H. 1/17/2007 2006 $4,586

21. K.L. 1!17/2007 2006 $4,586

22. C.M. 1/12/2008 2007 $3,672

23. D.R. 1/12/2008 2007 $4,716

24. M.K. 1/28/2008 2007 $4,716

25. M.H. 2/1/2008 2007 $4,667

26. T.R. 2/1/2008 2007 $2,853

27. On or about December 7, 2006, Defendant LORETTA FERGERSON emailed

eleven false driver's license images and two false Social Security card images from email address

lfergersonknology.net to loferg2000@yahoo.com .

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28. On or about the dates and in the amounts listed below, Defendants LORETTA

FERGERSON and TRACEY FERGERSON caused to be negotiated the following fraudulently

obtained RAL checks:

Paragraph Date Name on Check Date on Bank Amount

Cashed Check Number Check

29. 1/29/2007 K.L. 72012429 1/25/2007 HSBC $4,176.05

30. 1/30/2007 A.H. 72012400 1/25/2007 HSBC $4,176.05

31. 1/30/2007 S.G. 71659685 1/25/2007 HSBC $4,206.05

32. 1/30/2007 C.P. 71659691 1/25/2007 HSBC $4,206.05

33. 1/30/2007 V.S. 72012464 1/25/2007 HSBC $4,156.05

34. On or about February 9, 2007, Defendant LORETTA FERGERSON issued check

no. 1185 to A.H. in the amount of $4,079.00.

35. On or about October 4, 2007, Defendant LORETTA FERGERSON emailed an

electronic copy of an Alabama State Driver's License from email address lfergersonknology.net

to loferg2000yahoo.com . Defendant LORETTA FERGERSON edited this electronic copy to

create a fraudulent identification card in the name of D.R.

All in violation of Title 18, United States Code, Section 286.

COUNTS TWO THROUGH FIFTEEN

(False, Fictitious, or Fraudulent Claims)

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The factual allegations contained in Paragraphs 1 through 5 of the Introduction

Section of this Indictment are realleged and incorporated herein as if copied verbatim.

2. On or about the dates listed below, within the Middle District of Alabama,

Defendants LORETTA FERGERSON and TRACEY FERGERSON knowingly made and

presented, and caused to be made and presented, to the IRS, an agency of the United States

Department of the Treasury, claims against the United States for payment, which they knew to be

false, fictitious, and fraudulent, by preparing and filing false federal income tax returns for the

individuals whose name or initials are listed below, wherein claims for income tax refunds for the

amounts listed below were made, knowing such claims to be false, fictitious, and fraudulent:

Count Name! Date of Offense Tax Year Refund Claimed

Initials
TWO Loretta 1/13/2007 2006 $2,787
Fergerson
THREE M.K. 1/13/2007 2006 $4,586

FOUR C.P. 1/13/2007 2006 $4,586

FIVE W.L. 1/13/2007 2006 $4,586

SIX V.J. 1/13/2007 2006 $4,586

SEVEN S.G. 1/13/2007 2006 $4,586

EIGHT V.S. 1/13/2007 2006 $4,536

NINE A.H. 1/17/2007 2006 $4,586

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Count Name! Date of Offense Tax Year Refund Claimed

Initials
TEN K.L. 1/17/2007 2006 $4,586

ELEVEN C.M. 1/12/2008 2007 $3,672

TWELVE D.R. 1/12/2008 2007 $4,716

THIRTEEN M.K. 1/28/2008 2007 $4,716

FOURTEEN M.H. 2/1/2008 2007 $4,667

FIFTEEN T.R. 2/1/2008 2007 $2,853

All in violation of Title 18, United States Code, Section 287 and 2.

COUNTS SIXTEEN, SEVENTEEN, AND EIGHTEEN

(Wire Fraud)

The factual allegations contained in Paragraphs 1 through 5 of the Introduction

Section of this Indictment are realleged and incorporated herein as if copied verbatim.

2. From in or about December 2006 through in or about February 2008, within the

Middle District of Alabama and elsewhere, Defendants LORETTA FERGERSON and TRACEY

FERGERSON, having knowingly and intentionally devised and intended to devise a scheme and

artifice to defraud, and to obtain money by means of false and fraudulent pretenses, representations,

and promises, caused to be transmitted by means of wire communication in interstate and foreign

commerce, communication, signals, and writings, to wit: electronically filed tax returns.

THE SCHEME AND ARTIFICE

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It was part of the scheme and artifice that Defendant TRACEY FERGERSON

would obtain the names and Social Security numbers of individuals.

4. It was further part of the scheme and artifice that Defendant TRACEY

FERGERSON would and did provide names and Social Security numbers to Defendant

LORETTA FERGERSON for purposes of filing false IRS Forms 1040 and 1040A U.S. Individual

Income Tax Returns with the IRS.

5. It was further part of the scheme and artifice that Defendant LORETTA

FERGERSON would and did electronically file false tax returns with the IRS using the names and

Social Security numbers provided by Defendant TRACEY FERGERSON.

6. It was further part of the scheme and artifice that Defendant LORETTA

FERGERSON would and did apply for and obtain refund anticipation loans from HSBC and Santa

Barbara Bank and Trust based on the false tax returns electronically filed with the IRS.

7. It was further part of the scheme and artifice that Defendants LORETTA

FERGERSON would and did cause HSBC and Santa Barbara Bank and Trust to transfer refund

anticipation loan monies based on the false tax returns electronically filed with the IRS.

THE WIRE COMMUNICATIONS

8. On or about the dates listed below for each count, within the Middle District of

Alabama, Defendants LORETTA FERGERSON and TRACEY FERGERSON, for the purpose

of executing and attempting to execute the scheme and artifice to defraud, and to aid and abet the

same, transmitted, and caused to be transmitted by means of wire communication in interstate and

foreign commerce, writings, signs, signals, pictures, and sounds as described for each count below:

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COUNT DATE OF WIRE COMMUNICATION

____________ OFFENSE _____________________________________
SIXTEEN 1/17/2007 Electronic Tax Return for K.L. in the amount of $4,586
SEVENTEEN 1/12/2008 Electronic Tax Return for D.R. in the amount of $4,716
EIGHTEEN 1/13/2007 Electronic Tax Return for C.P. in the amount of $4,586

All in violation of Title 18, United States Code, Section 1343.

COUNT NINETEEN
(Aggravated Identity Theft)

The factual allegations contained in Paragraphs 1 through 5 of the Introduction

Section of this Indictment are realleged and incorporated herein as if copied verbatim.

2. On or about January 17, 2007, within the Middle District of Alabama, Defendant

LORETTA FERGERSON did knowingly transfer, possess, and use a means of identification of

another person without lawful authority during and in relation to the felony offense described above

in Count Sixteen of this Indictment, that is, she knowingly used the name and Social Security

number of "K.L.," an actual person, to unlawfully steal and convert to her own use and the use of

others from the IRS a tax refund having a value of approximately $4,586.

All in violation of Title 18, United States Code, Sections 1028A(a)(1), (c)(5).

COUNT TWENTY
(Aggravated Identity Theft)

1. The factual allegations contained in Paragraphs 1 through 5 of the Introduction

Section of this Indictment are realleged and incorporated herein as if copied verbatim.

2. On or about January 12, 2008, within the Middle District of Alabama, Defendant

LORETTA FERGERSON did knowingly transfer, possess, and use a means of identification of

another person without lawful authority during and in relation to the felony offense described above

in Count Seventeen of this Indictment, that is, she knowingly used the name and Social Security

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number of "D.R.," an actual person, to unlawfully steal and convert to her own use and the use of

others from the TRS a tax refund having a value of approximately $4,716.

All in violation of Title 18, United States Code, Sections 1 028A(a)(1), (c)(5).

COUNT TWENTY-ONE
(Aggravated Identity Theft)

The factual allegations contained in Paragraphs 1 through 5 of the Introduction

Section of this Indictment are realleged and incorporated herein as if copied verbatim.

2. On or about January 17, 2007, within the Middle District of Alabama, Defendant

TRACEY FERGERSON did knowingly transfer, possess, and use a means of identification of

another person without lawful authority during and in relation to the felony offense described above

in Count Sixteen of this Indictment, that is, she knowingly used the name and Social Security

number of "K.L.," an actual person, to unlawfully steal and convert to her own use and the use of

others from the IRS a tax refund having a value of approximately $4,586.

All in violation of Title 18, United States Code, Sections 1028A(a)(1), (c)(5).

COUNT TWENTY-TWO
(Aggravated Identity Theft)

The factual allegations contained in Paragraphs 1 through 5 of the Introduction

Section of this Indictment are realleged and incorporated herein as if copied verbatim.

2. On or about January 13, 2007, within the Middle District of Alabama, Defendant

TRACEY FERGERSON did knowingly transfer, possess, and use a means of identification of

another person without lawful authority during and in relation to the felony offense described above

in Count Eighteen of this Indictment, that is, she knowingly used the name and Social

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Security number of "C.P.," an actual person, to unlawfully steal and convert to her own use and

the use of others from the IRS a tax refund having a value of approximately $4,586.

All in violation of Title 18, United States Code, Sections 1 028A(a)(1), (c)(5).

A TRUE BILL:

oreperson

LEURA G. CANARY
United States Attorney

Charles M. Edgar, Jr.

Michael Boteler
Trial Attorneys
United States Department of Justice
Tax Division

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