The Texas man who pleaded guilty to playing a role in the scheme to steal tax records by hacking into the IRS Get Transcript app was sentenced Aug. 8 to two years in prison followed by two years of supervised release.
Denzel Roberts, 24, of Houston, was also ordered to pay $74,341 in restitution for his part in the scheme, which compromised the accounts of some 1 million taxpayers until the app was taken offline in May 2015.
Using information gathered online through public sources and databases of stolen information, Roberts and a Georgia couple — Anthony and Sonia Alika, 42 and 27, respectively — were able to game the app’s knowledge-based questions to gain access to more than 720,000 taxpayer records. The hackers also attempted to access another 465,000 accounts but were unsuccessful.
According to court records, the Alikas used that access to file false tax returns for 2014 and claim the refunds. Those funds were deposited into a bank account Roberts opened using a fake passport. He then withdrew the funds, took his cut and distributed the remaining money among his co-conspirators.
“Mr. Roberts may have thought that he would not get caught while acting as a conduit for ill-gotten gains, but he will now pay the price for stealing funds from the American tax system and honest citizens,” said Richard Weber, chief of the IRS Criminal Investigations division.
The IRS sent letters to those affected — whether the attempt was successful or not — informing them of the breach and offering credit monitoring and fraud protection.
The Get Transcript app is back online as of June with a new multifactor authentication system to ensure future hacks won’t be so easy.
Roberts got off relatively easy, as he was facing a maximum of 10 years in prison and an additional $250,000 fine.
“Individuals like Mr. Roberts who receive the fraudulent refunds, especially through opening bank accounts in fictitious names, play key roles in these illegal schemes and substantially contribute to the loss to the U.S. Treasury and the damage inflicted on identity theft victims,” the Justice Department’s principal deputy assistant attorney general, Caroline Ciraolo, said. “Working with our law enforcement partners, we will continue to seek lengthy prison terms and substantial monetary penalties for those who engage in this criminal conduct.”
