EUGENE, Ore. – A local scam victim tipped off authorities to a Nigerian identity theft and tax fraud scheme.
In May 2013, a fraud victim in Medford told the IRS false federal and state tax returns were filed using her and her husband’s personal information.
The IRS determined the false filings were part of a much broader scheme where co-conspirators would gather a large number of stolen identities and file for tax returns using the identities. The money would then be funneled to Nigeria.
According to the U.S. Department of Justice, the scheme lasted for years, netting more than $11.6 million in fraudulent tax returns.
Prosecutors said Wisconsin resident Curtis Sherman Pethley was involved in the crimes by helping provide information to his Nigerian contact.
When IRS agents searched Pethley’s home, they found 150 prepaid debit cards and seized money orders worth nearly $50,000.
Pethley pleaded guilty to mail fraud, conspiracy to commit mail fraud, and aggravated identity theft on August 27, 2018.
On February 20, 2019, Pethley was sentenced to 57 months in federal prison and ordered to pay $440,000 in restitution.
Pethley was already in prison for distributing child pornography. The clock will start ticking on his most recent sentence in Oregon after he serves 60 months for the child pornography charges.
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