Three family members were sentenced today to prison following a jury trial that resulted in convictions for their roles in a multimillion-dollar tax refund fraud scheme. David Hunt was sentenced to 92 months in prison, his son Baylon Hunt was sentenced to 38 months in prison, and Baylon’s half-brother Corey Burt was sentenced to 94 months in prison for orchestrating a scheme to file tax returns in the names of purported trusts they controlled. A fourth family member who was also convicted at trial is scheduled to be sentenced in May.
According to statements made in court and evidence presented at trial, the Hunts, of Arlington, Texas, Burt, formerly of Long Beach, Mississippi, and another family member orchestrated a scheme to file tax returns in the names of purported trusts they controlled. In total, they sought more than $8.5 million in tax refunds that the trusts were not entitled to receive. As part of their scheme, Baylon Hunt and the other family member submitted additional fake documents to the IRS including falsified financial instruments and altered money orders. Even after receiving warning letters to discontinue their fraudulent submissions, they continued filing false returns and other documents with the IRS.
As a result of the scheme, the co-conspirators received over $1.7 million in fraudulent proceeds from the IRS, which they shared and used to purchase luxury goods, furniture, cryptocurrency, a Cadillac Escalade and a house in Mississippi.
All four defendants were convicted at trial of conspiracy to defraud the United States. David Hunt, Burt, and the other family member were also convicted of multiple counts of aiding and assisting in the preparation of false tax returns. Baylon Hunt was acquitted of two counts of aiding and assisting in the preparation of false tax returns.
In addition to the terms of imprisonment, the defendants were jointly ordered to pay $1,774,864 in restitution to the United States.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division and U.S. Attorney Ryan Raybould for the Northern District of Texas made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Melissa Siskind and Daniel Lipkowitz of the Criminal Division’s Tax Section and Assistant U.S. Attorney Mark McDonald of the Northern District of Texas prosecuted the case.