N.J. Jail Inmates Cheated On Taxes, Paid For Lawyers: Prosecutor

Authorities have charged two Essex County men with filing $368,557 of false federal income tax returns on behalf of inmates at the Essex County Correctional Facility.

According to the Essex County Prosecutor’s Office, authorities charged East Orange residents Reginald Eaford, 45, and Winfred Moses, 48, with one count of conspiracy to defraud the United States and one count of aggravated identity theft.

Prosecutors allege that while incarcerated in the Essex County Correctional Facility from May of 2013 to Februrary of 2014, Eaford “deposited unusually large amounts of money into his inmate account.”

Through a review of the recorded telephone calls and records maintained by the Essex County Jail, law enforcement officers allegedly learned that Eaford, Moses, and others conspired to obtain social security numbers, dates of birth and other information from inmates at the Essex County Jail, prosecutors stated.

Eaford and Moses would then allegedly generate false W-2 forms indicating that the inmates had earned income during the relevant tax year and that federal income tax had been withheld from their paychecks, authorities charged.

Eaford and Moses would then file false federal income tax returns on behalf of the inmates and refund checks would be sent to the Essex County Jail or to Moses's East Orange residence, prosecutors stated.

The proceeds of the fraud were then split among Eaford, Moses, and the relevant inmates, authorities said.

According to interviews conducted by law enforcement of current and former inmates at the Essex County Jail, the fraudulent tax proceeds were used by inmates to pay for bail, lawyers, or other needs, prosecutors stated.

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