2 Ariz. residents held in $2.5 mil tax-refund fraud

Two Surprise residents have been indicted in a $2.5 million tax-refund scheme, according to the U.S. Department of Justice.

Kenya Malcolm, 34, and Charles Ross, 40, both from Surprise, along with Bernard Brantley, 43, of Waterbury, Conn., are named in the 18-count indictment, which was returned Thursday.

The indictment alleges that Malcolm, Ross and Brantley told the victims that they were eligible for “Obama stimulus money” or “government funding” to be received in prepaid debit cards. Malcolm, Ross and Brantley obtained personal information from the victims and used it to file false federal income-tax returns, officials say.

Malcolm, who operated a business in Surprise called Biggest Tax Refund Inc. received refunds that totaled more than $2.5 million, federal officials say.

Malcolm is accused of depositing some of the refunds partially into bank accounts controlled by her, her family, her employees and Ross. Some of the money was deposited into bank accounts linked to the prepaid debit cards that were sent to the victims,officials say.

Malcolm, Ross and Brantley all face charges of conspiracy, mail fraud, wire fraud and theft of public money.

Malcolm and Brantley were also charged with one count each of aggravated identity theft.