On Friday, September 29, 2017, a Oklahoma man was sentenced to two years in prison for conspiring to defraud the United States with false claims for federal tax returns. 72-year-old Donald Loyde Harned has also been ordered to pay $219,984 in restitution. Court documents show that Harned and six other co-defendants operated a tax fraud scheme beginning in 2011.
The defendant filed false tax returns using the identities of prison inmates. To carry out the scheme, the defendants inside the Susanville Correctional Center acquired identifying information from other inmates. The information was passed along to Harned and others, who used it to prepare and file false tax returns using the Earned Income Tax Credit to which the inmates were not entitled.
Harned was paid by the inmates for each return filed and he also kept a portion of the false refunds for himself. Six of the seven individuals involved in the conspiracy have pleaded guilty. They have been sentenced. This includes Edwin Ludwig IV, who was given a sentence of seven years in prison for leading the scheme.
Again, Donald Loyde Harned has been sentenced to two years in prison for his involvement in the scheme.