A prison inmate in California, Kristopher Thomas, serving a sentence for a gang-related murder, has been accused of orchestrating a massive fraud scheme defrauding the U.S. government of over $550 million in federal tax credits, as stated by prosecutors. Thomas, 36, has been incarcerated at Kern Valley State Prison since December 2010 and is serving a 50-year-to-life sentence for the 2009 murder of Dequawn Allen in Los Angeles.
In addition to the tax fraud, Thomas is also charged with operating a drug trafficking ring from his prison cell. This operation allegedly involved distributing significant quantities of methamphetamine across several states and smuggling fentanyl into Kern Valley State Prison.
Thomas’ mother, Kettisha Thompson-Dozier, 55, and her spouse Charmane Dozier, 44, both residents of Waldorf, Maryland, along with Sharon Vance, 36, from Hawthorne, California, have been co-charged in the tax credit scheme. All four defendants face charges of conspiracy to defraud the government.
Moreover, five other individuals have been charged alongside Thomas in the drug trafficking case. The group is accused of handling over 100 pounds of methamphetamine, as well as significant amounts of fentanyl, heroin, and cocaine.
The alleged tax fraud involved filing over 400 payroll tax returns, falsely claiming employer retention credits using names of fake businesses and real companies with exaggerated employee data. This credit, introduced during the Covid-19 pandemic, was designed to help businesses retain employees, offering up to $7,000 per employee per quarter in 2021.
According to the U.S. Attorney’s Office for the Eastern District of California, Thomas, a member of the Main Street Mafia Crips gang, used a prison-issued electronic tablet to coordinate these fraudulent activities. He allegedly instructed co-conspirators on filing tax returns, handling IRS correspondence, and depositing refund checks. The funds were reportedly used for personal expenses, including extravagant celebrations in Las Vegas.
The tax scheme and drug operations were uncovered following a Drug Enforcement Administration investigation initiated in August 2022. DEA agents tapped Thomas’s communications, leading to significant drug seizures linked to him in multiple states, including Hawaii, Alabama, New Jersey, Oklahoma, and within Kern Valley State Prison.
U.S. Attorney Philip Talbert expressed astonishment at Thomas’s ability to coordinate these extensive criminal activities from within prison. Both the drug trafficking and tax fraud schemes signify the extent of Thomas’s influence and the sophisticated nature of his criminal operations.
