Feds: "Hacker" files 1,300 fraudulent tax returns

Federal officials announced a 74-count indictment on Thursday in Arizona that detailed what they say was a complicated tax fraud conspiracy in which someone they called “the Hacker” used sophisticated computer intrusion techniques to file more than 1,300 fraudulent tax returns seeking more than $3.1 million in refunds.

Officials with the Internal Revenue Service and the U.S. Postal Inspection Service joined U.S. Attorney Dennis Burke at a press conference in Phoenix in announcing the indictment of California resident Daniel David Rigmaiden.

“Daniel Rigmaiden led agents through a virtual labyrinth of twists and turns, but they never gave up,” said Burke, U.S. Attorney for the District of Arizona, according to a report on Tuscon Citizen Web site. “This investigation demonstrates how the United States is aggressively investigating persons who file fraudulent tax returns. We will seek to identify and vigorously prosecute those who participate in these schemes, no matter how sophisticated they are.”

The indictment alleges that as early as 2005, Rigmaiden conspired with others to obtain the names and Social Security numbers of living and deceased persons, and to use their identities to electronically file the fraudulent tax returns to obtain refunds that went into more than 170 bank accounts, including a number of bank accounts in Arizona.

“Taking the identities of numerous deceased individuals to obtain financial gain is something not often seen to this magnitude,” said Pete Zegarac, inspector in charge of the U.S. Postal Inspection Service’s Phoenix Division.

The indictment had remained under seal for more than a year, while Rigmaiden considered a government offer to cooperate with the investigation. In January, Rigmaiden indicated he would not cooperate with the government and the indictment was unsealed on March 26. Rigmaiden has remained in federal custody since his arrest. An alleged co-conspirator, Ransom Marion Carter, III, 43, of Phoenix, remains a fugitive, federal officials said.