A 42-year-old East Tampa businessman was in federal court on Tuesday. During the hearing, he entered an agreement to plead guilty to one count of wire fraud and one count aggravated identity theft.
Federal Judge James D. Whittemore has the option of accepting the agreement. If he does, Russell Simmons, Jr., faces a mandatory two-year sentence on the aggravated identity theft charge. He could face up to 20 years on the wire fraud charge.
According to court documents, federal investigators began receiving tips that Simmons was engaging in tax fraud at his business, Simmons Auto Sales, 4615 N. 34th Street. Investigators were told that individuals participating in the tax fraud scams would pay more than the vehicles were worth at the dealership.
Simmons allegedly negotiated the checks and laundered the funds through his business accounts.
Investigators also learned that Simmons filed fraudulent tax returns from his business computer and maintained numerous records of personal information of identity theft victims.
In July 2011, a Cooperating Defendant (CD) met with Simmons in reference to cashing income tax checks. Simmons reportedly told the CD that he was no longer cashing checks. However, Simmons told the CD that he was accepting Green Dot cards, police said.
Surveillance video captured Simmons using a Green Dot card at a Wal-Mart in Plant City. He obtain four money orders for $500.00 each and conducted other transactions for $2,050.04.
He was captured on video at several other locations using the cards and receiving $76,088.20 in cash and money orders. Simmons also collected $14,000 by using reloadable debit cards.
Police obtained search warrants for his home and business. During the search, police seized $25,000 in cash, 134 Green Dot reloadable cards, and jewelry.
Simmons told investigators that he would request the tax refunds be place onto reloadable cards and sent to vacant homes in Tampa.
On August 31, 2011, police seized approximately $118,275 loaded on to Money Cards; a 2005 Bentley, and 18k gold Rolex Watch; 14k gold necklace with a pendant that contained 703 diamonds and the initials “RS.”
Police also confiscated a 14k gold Double Cuban link chrome chain; 14k gold men’s ring with 110 diamonds; 14k gold and diamond men’s bracelet with 2,420 round diamonds other jewelry, and $25,000 in cash.
In total, Simmons filed 120 false income tax refunds, with refunds worth $1,176,787.
