California Man Melvin Louis Hughes Allegedly Sought More than $700M in Fraudulent Refunds. The IRS Sent Him $13 Million
Federal authorities have indicted California man Melvin Louis Hughes for mail fraud and various tax crimes. The indictment states that from 2016 through 2025, Hughes operated a scheme to file false federal tax returns. The tax returns claimed millions of dollars in fraudulent tax refunds.
The indictment also states Hughes submitted fraudulent Forms 1041 and Forms 1099s. He also filed U.S. Income Tax Returns for Estates and Trusts, for himself and others.
The fake returns claimed more than $360 million in income tax withholdings.Â
The IRS also claims that Hughes 2024 and 2025 filed false IRS Forms 1040 which claimed $370 million in refunds.Â
Hughes allegedly received approximately $6.2 million in tax refunds. He allegedly used the funds to purchase a $1.84 million house in Malibu, California and two Tesla automobiles. In addition, he also bough approximately $500,000 in cryptocurrency.
Hughes also allegedly promoted this scheme to at least 17 other taxpayers and collecting various fees from them. He allegedly demanded 10% of the refund they received. However, he instructed that clients pay Brother to Brother Outreach Trust.
Hughes set up the fake charity so he could characterize it as a charitable donation. The IRS alleges Hughes received approximately $868,704.45 from the taxpayers who had utilized his scheme.
Hughes Faces Life In Prison For Defrauding The IRS Out Of $13 Million
IRS alleges Hughes’ scheme caused a total tax loss to the IRS of approximately $13 million.Â
Federal prosecutors have charged Hughes with mail fraud and making a false claim. In addition, they have charged him with filing false tax returns and assisting in the preparation of false tax returns.
Hughes faces a maximum penalty of 20 years in prison for mail fraud. He also faces a maximum penalty of five years in prison for each count of making false claims for refund. In addition, he faces a maximum penalty of three years in prison for each count of filing false tax returns. But wait, there’s more! He also faces a maximum penalty of three years for each count of preparing false tax returns.
