Maryland Man Pleads Guilty to Role in Elaborate Scheme to Defraud IRS

MARTINSBURG, WEST VIRGINIA — A resident of Suitland, Maryland, has admitted to his involvement in a complex financial fraud operation that targeted the Internal Revenue Service and involved stolen Treasury checks, fake business registrations, and the rapid withdrawal of illicitly obtained funds. The plea, entered by Gregory Dean, 33, marks a significant development in the ongoing efforts by the U.S. Attorney’s Office for the Northern District of West Virginia to combat financial crime.

According to information presented in court, Dean and his co-conspirators initiated their scheme in October 2024 with the objective of illegally acquiring U.S. Treasury checks destined for legitimate businesses and individuals. Their method involved creating or registering entities with names intentionally similar to the intended recipients of these checks. These fraudulent entities then applied for Employer Identification Numbers (EINs) through the IRS’s Modernized Internet Employer Identification Number (MOD IEIN) portal, which is processed at the IRS facility located in Martinsburg.

Once EINs were secured for these fabricated businesses, the conspirators proceeded to open bank accounts under the fraudulent entities’ names. They then deposited the stolen Treasury checks into these new accounts. The critical phase of the scheme involved quickly withdrawing the funds from these accounts before the financial institutions or the IRS could detect the fraud. As part of Dean’s guilty plea, it was revealed that the group submitted an electronic EIN application for a company named “Williams Homes Inc.” to the IRS processing center in Martinsburg. The EIN obtained for this fake company was subsequently used to open a bank account, into which a Treasury check valued at $342,320.00, payable to a legitimate business, was deposited.

The investigation has also implicated two other Maryland residents, Tijuan Arrington and David Walters, who have been indicted on multiple counts of wire fraud in connection with the same scheme. Their trial is anticipated to commence in November 2026. Gregory Dean faces a potential maximum sentence of 20 years in federal prison, with the final sentencing to be determined by a federal district court judge based on U.S. Sentencing Guidelines and other applicable legal factors. The prosecution of this case is being handled by Assistant U.S. Attorney Eleanor F. Hurney, with investigative support provided by the Treasury Inspector General for Tax Administration. This case is part of a broader initiative by the Department of Justice’s National Fraud Enforcement Division, established to investigate and prosecute individuals who perpetrate fraud against the American public.

This development highlights the persistent threat of sophisticated financial fraud and its impact on government agencies and legitimate businesses. Residents engaging with financial institutions or applying for business identification numbers are encouraged to remain vigilant against potential scams and to ensure they are using official government channels for all applications and transactions.

Article by Mel Anara, based upon information from the U.S. Attorney’s Office, Northern District of West Virginia.

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