Three family members sentenced to federal prison after multimillion-dollar tax refund fraud scheme uncovered in Texas

Dallas, Texas – Three members of the same family have been sentenced to federal prison after a jury found them guilty of taking part in a large tax refund fraud scheme that stretched over time and involved millions of dollars in false claims. The case, centered in Arlington, Texas, exposed a carefully planned effort to deceive the Internal Revenue Service and collect money they were never entitled to receive.

David Hunt received a sentence of 92 months in prison, while his son, Baylon Hunt, was sentenced to 38 months. Baylon’s half-brother, Corey Burt, received the longest sentence of the three, with 94 months behind bars. A fourth family member who was also convicted in connection with the scheme is still awaiting sentencing, which is scheduled to take place in May.

Scheme built on false trusts and fake filings

According to statements made in court and evidence presented during the trial, the group carried out a scheme that revolved around filing fraudulent tax returns under the names of supposed trusts they claimed to control. These trusts, however, were not legitimate entities entitled to receive the large refunds they were requesting.

In total, the defendants attempted to obtain more than $8.5 million in tax refunds. To support their claims, Baylon Hunt and another family member submitted additional documents to the IRS that were not real. These included falsified financial instruments and altered money orders, all designed to make the filings appear valid.

Even after the IRS issued warning letters telling them to stop, the group did not back down. Instead, they continued submitting false returns and paperwork, pushing forward with the scheme despite clear notice that their actions were under scrutiny.

Their persistence paid off for a time. Investigators revealed that the co-conspirators managed to receive more than $1.7 million in fraudulent proceeds from the IRS. The money was then split among them and used for personal purchases. Among the items bought were luxury goods, furniture, cryptocurrency, a Cadillac Escalade, and even a home in Mississippi.

Convictions and financial consequences

All four defendants were convicted at trial of conspiracy to defraud the United States. In addition to that charge, David Hunt, Corey Burt, and the fourth family member were also found guilty of multiple counts of aiding and assisting in the preparation of false tax returns. Baylon Hunt, however, was acquitted of two of those additional counts.

Beyond their prison sentences, the court also ordered the defendants to repay the money they wrongfully obtained. Together, they must pay $1,774,864 in restitution to the United States, reflecting the amount that was confirmed as lost through the scheme.

Federal officials emphasized the seriousness of the case and the effort that went into uncovering the fraud. The announcement was made by 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.

The investigation was carried out by IRS Criminal Investigation, with prosecution led by Trial Attorneys Melissa Siskind and Daniel Lipkowitz of the Criminal Division’s Tax Section, along with Assistant U.S. Attorney Mark McDonald.

The case stands as a reminder of how financial crimes involving false filings and fabricated documents can lead to long prison sentences and major financial penalties, especially when individuals continue illegal actions even after receiving clear warnings to stop.