Three Men Sentenced to Prison for Tax Refund Fraud Scheme
Summary
The U.S. Department of Justice announced the sentencing of three men to federal prison for their roles in a multimillion-dollar tax refund fraud scheme. The defendants defrauded the IRS of over $1.7 million and were ordered to pay restitution.
What changed
Three individuals, David Hunt, Baylon Hunt, and Corey Burt, have been sentenced to significant prison terms (92 months, 38 months, and 94 months respectively) for orchestrating a scheme to file fraudulent tax returns through purported trusts. The scheme sought over $8.5 million in refunds, ultimately resulting in the illicit receipt of over $1.7 million from the IRS. A fourth family member convicted in the trial is awaiting sentencing.
In addition to their prison sentences, the defendants have been jointly ordered to pay $1,774,864 in restitution to the United States. This case highlights the severe consequences of tax fraud, including lengthy incarceration and financial penalties, and serves as a warning to individuals engaging in similar fraudulent activities. The IRS Criminal Investigation division led the investigation.
What to do next
- Review internal controls for tax return preparation and submission processes.
- Ensure compliance with IRS regulations regarding trust filings and refund claims.
- Report any suspicious activities related to tax fraud to relevant authorities.
Penalties
Prison sentences ranging from 38 to 94 months; ordered to pay $1,774,864 in restitution to the United States.
Source document (simplified)
News
Press Release
Three Men Sentenced to Prison in Multimillion Dollar Tax Refund Fraud Scheme
Thursday, March 26, 2026
Share For Immediate Release Office of Public Affairs 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.
Updated March 26, 2026 Topic Tax Components Criminal Division USAO - Texas, Northern Press Release Number: 26-292
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