Florida Man Sentenced to 9 Years in Prison for $3.4 Million Tax Fraud Scheme as a Self-Proclaimed “Sovereign Citizen”

A person who identifies as a “Sovereign Citizen” has been given a five-year prison sentence for participating in a conspiracy to submit false tax returns and defraud the U.S. Treasury. They were also convicted of aiding in the preparation of false tax returns and filing a false lien against the U.S. Attorney for the Northern District of Florida. Additionally, they received a consecutive four-year sentence for failing to appear in court.

Judy Grace Sellers has been ordered to pay restitution of $23,264.08, which represents the unrecovered loss from the tax counts.

The indictment against Sellers was initially filed in December 2014.

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She was indicted for absconding while on bond in February 2024, with her indictment being superseded to include this charge. On March 1, 2024, a federal jury found her guilty on all counts.

In the trial, it was revealed that Sellers ran a website called commercialredemption.com between 2008 and 2009. This website was used by her to encourage and facilitate tax fraud through the misuse of IRS Form 1099-OID.

The sellers, who are labeled as “sovereign citizens,” promote a false belief that the U.S. Treasury holds hidden accounts for every American citizen. They claim that by submitting fraudulent documents to the Treasury and other government bodies, individuals can access these accounts.

Sellers also encouraged the utilization of IRS Form 1099-OID as a means to deceptively report various debts, such as mortgages, student loans, credit card debts, and court judgments, as income. This was done alongside falsely claiming 100% withholdings of the said “income” in informational returns, with the intention of circumventing the IRS’s internal controls and manipulating the issuance of undeserved refunds.

The 1099-OID form is intended for companies like brokers to report the income received by the purchaser of a discounted security to the IRS. In this case, sellers themselves created and submitted fraudulent 1099-OID forms to the IRS.

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Sellers’s accomplices proceeded to prepare and submit false tax returns requesting substantial refunds, with one return even surpassing half a million dollars.

The IRS received fraudulent refund claims amounting to at least $3.4 million through the submission of 22 returns. These claims were based on fictitious 1099-OID “income” and withholdings.

In 2011, the U.S. Attorney’s Office for the Northern District of Florida took legal action to stop Sellers from promoting her fraudulent scheme on her website, commercialredemption.com. In response, Sellers retaliated by filing a false lien against the U.S. Attorney and a Department of Justice tax attorney who was involved in the case.

In 2014, Sellers faced an indictment and subsequent arrest for charges related to tax fraud and filing a false lien. As a result, she was placed under house arrest with a GPS ankle monitor in January 2015 while awaiting trial.

“Murderous Rampage” – Colorado Man Breaks Into Ex-Girlfriend’s Home And Murders 4 People

A horrifying incident unfolded in Colorado as a man went on a murderous rampage, breaking into his ex-girlfriend’s home and claiming the lives of four individuals. This heart-wrenching event serves as a chilling reminder of the devastating consequences that can arise from acts of violence and the importance of addressing issues related to domestic disputes.

The incident occurred when the man, whose identity has been withheld, gained unlawful entry into his ex-girlfriend’s residence. Fueled by anger and resentment, he targeted not only his ex-partner but also others who were present in the house at the time. The motive behind the attack remains unclear, leaving the community in shock and seeking answers.

Law enforcement authorities swiftly responded to the scene after receiving distress calls. Their arrival, however, was tragically too late to prevent the loss of innocent lives. The suspect was apprehended at the scene and is currently in custody, awaiting legal proceedings.

In the aftermath of this heinous act, the community is left grappling with grief and seeking solace. Friends, family, and neighbors are coming together to support one another during this difficult time. The incident serves as a stark reminder of the importance of fostering an environment that encourages open dialogue and seeks peaceful resolutions in the face of conflict.

The impact of such acts of violence extends far beyond the immediate victims and their loved ones. It reverberates throughout society, leaving a lasting impression on the collective consciousness. It is a stark reminder of the urgent need to address and prevent domestic disputes, ensuring the safety and well-being of individuals in vulnerable situations.

As the investigation continues, the community remains united in mourning the loss of four precious lives. The incident serves as a painful reminder of the fragility of life and the imperative to work towards a society that is free from violence and brutality.

In May 2015, Sellers received approval from her probation officer to leave her residence and visit a hair salon for her pretrial hearing scheduled a few days later. However, the following day, Sellers took matters into her own hands by removing her GPS ankle monitor and discarding it alongside the highway before fleeing from authorities.

Sellers was eventually found in New Mexico, more than eight and a half years after her disappearance. She had previously pleaded guilty to not showing up for her sentencing in a federal counterfeiting case back in 2002. During her apprehension in Mississippi, she was living under an assumed identity.

Lani Rosado-Espinal, the Acting Special Agent in Charge of the CI Tampa Field Office, emphasized the determination to pursue individuals who try to corrupt the country’s tax system. The sentencing today serves as a strong message that nobody is exempt from the law in this great nation. Law enforcement partners share the same level of commitment to ensure that those who believe they can evade the law are held accountable for their actions.

The IRS – Criminal Investigation, the Federal Bureau of Investigation, and the Treasury Inspector General for Tax Administration conducted an investigation into this case, with support from the U.S. Marshals Service. Assistant United States Attorneys Laura Cofer Taylor and Kelly Milliron handled the prosecution.

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