Georgia film tax fraud: Southwest Georgia men guilty in $550K scheme
ALBANY, Ga. - Two Southwest Georgia men face decades in federal prison after admitting to a fraudulent scheme that attempted to steal over $550,000 in New York film industry tax credits.
Albany federal court tax convictions
What we know:
Ryan Rugg, 28, of Tifton, pleaded guilty on Wednesday to one count of conspiracy to commit wire fraud. He faces up to 30 years in prison, five years of supervised release and a $250,000 fine.
His co-defendant, Joshua Jordan, 37, of Tifton, pleaded guilty on March 26 to conspiracy to commit wire fraud and one count of aggravated identity theft.
Jordan faces up to 30 years for wire fraud plus a mandatory two consecutive years for identity theft, along with $500,000 in potential fines and five years of supervised release.
Southwest Georgia tax credit investigation
What we don't know:
Officials have not publicly identified the 18 Georgia residents whose information appeared on the tax forms.
Authorities have also not disclosed whether any additional co-conspirators were involved in gathering the personal data.
Fake New York tax scheme
By the numbers:
State tax investigators flagged 22 suspicious New York tax returns submitted by 18 Georgia residents starting on June 24, 2023. The forms falsely claimed tax credits for film and television production work that never occurred.
In total, Jordan and Rugg fraudulently obtained or attempted to steal more than $550,000 through the conspiracy.
Jordan created an account in February 2023 with Online Taxes, a tax software company based in Missouri. On April 18, 2023, he submitted a fraudulent return using the stolen identity and Social Security number of a victim identified in court records as S.B.
Jordan called the New York tax office on May 4, 2023, pretending to be S.B. to check on the filing. That single fraudulent submission resulted in a $49,772 payout from the state of New York.
Official statements on tax fraud
What they're saying:
"We are committed to protecting taxpayers by ensuring that tax credits designed to create and maintain jobs are used lawfully," said U.S. Attorney William R. "Will" Keyes. "The Department of Justice’s National Fraud Enforcement Division remains focused on combating fraud. We will continue working closely with our law enforcement partners to prevent financial crimes and uphold the public’s trust."
"Financial fraud is far from a victimless crime. Schemes like this divert public resources, exploit stolen identities, and erode confidence in programs designed to benefit legitimate businesses and workers," said Thomas Clark, Supervisory Senior Resident Agent of FBI Atlanta’s Valdosta office. "The FBI and our partners will continue to aggressively investigate those who believe they can profit through deception and hold them accountable for their actions."
"Let this serve as a warning to any taxpayers considering lining their pockets for personal gain. The defendants repeatedly submitted fraudulent tax records attempting to steal funds that drive New York State’s creative economy," said Amanda Hiller, New York State Department of Taxation and Finance Acting Commissioner.
"I commend the dedicated work of our NYS Tax Investigators and thank United States Attorney Keyes and his office for their partnership and diligent efforts in bringing tax criminals to justice," Hiller added.
Sentencing hearings
What's next:
Jordan will be sentenced on Sept. 3 at 3 p.m. in Albany. Federal crimes do not carry parole.
Rugg's sentencing is set for Oct. 29 at 3 p.m. in Albany before U.S. District Judge W. Louis Sands.
The Source: The information in this story was gathered from Public Affairs Director Melissa Hodges and the U.S. Attorney's Office for the Middle District of Georgia, who detailed the guilty pleas in an official press release, as well as investigative statements from FBI Atlanta's Valdosta office and the New York State Department of Taxation and Finance.