One man has recently pled guilty to charges stemming from what authorities are calling a massive tax fraud scheme that cost the federal government millions of dollars. The defendant, 45-year-old Bobby Crabtree, is one of 34 people from Battle Creek, in Calhoun County who have been indicted so far in connection with this case.
According to investigators, the leader of this group was 52-year-old Derrick J. Gibson. He allegedly headed up the band of co-conspirators. They are alleged to have used the names of prison inmates along with the names of both patients and workers at the Battle Creek, Michigan Veterans Affairs Medical Center, to file fraudulent tax returns. Many of them are also alleged to have bank accounts in false names into which the fraudulent federal income tax refunds were deposited.
Indictment Charges Filed
The indictment charges that between 2007 and 2014, the group filed almost 4,700 falsified federal income tax returns. The scheme has apparently cost the government in excess of 22 million dollars thus far. This is just one of the many reasons that the federal government was willing to spend so much time and effort working on the case.
The investigation included members from a variety of different federal, state and local law enforcement departments. Federal agencies included the Internal Revenue Service, the VA Office of Inspector General, the U.S. Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Department of Homeland Security. These agencies were assisted by local counterparts including the Michigan State Police, the Calhoun County Sheriff’s Office and the Battle Creek and Albion police departments.
Crabtree is a prison inmate in the Michigan Department of Corrections. While locked up there, he is alleged to have gleaned the names and personal information of other inmates, which he then fed to Gibson. Gibson then allegedly used the information to file falsified income tax returns In return for the information, it is claimed that Crabtree was paid $50 for each complete set of personal information he provided to Gibson, along with commissary items from the prison store.
Crabtree has pleaded guilty to Conspiracy to Defraud the United States through the Filing of False Claims. He appeared in U.S. District Court, Western District of Michigan, where his plea was entered and the details of his deal were discussed. In the Federal Court system, this kind of a plea bargain is called a Rule 11 agreement.
Crabtree has agreed to cooperate fully with the IRS and the US Attorney’s Office during the remainder of their investigation. In addition, he has agreed to pay restitution. Our federal criminal defense attorney remind us that it isn’t likely that this inmate will pay back the $22 million any time soon. Our defense lawyers are on standby 24/7 for people charged with or being investigated for a state or federal crime.