Huntsville women plead not guilty in prison tax fraud scheme - WAFF-TV: News, Weather and Sports for Huntsville, AL

Huntsville women plead not guilty in prison tax fraud scheme

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Two Huntsville women, including a Huntsville City Schools employee, are facing federal charges accused of using convicts in an income tax scam. Both were arraigned in Federal Court on Wednesday.

Federal Agents are accusing more than half a dozen people of using Alabama prison inmates information to create false income tax returns. Some of the inmates are on death row. 

Irene Douglas and Marlo Miller both plead not guilty to the crime. Federal Agents claim an inmate at the Donaldson Correctional Facility took information from other inmates and used outside help to file fake income tax returns.

Miller is accused of depositing the fraudulent refund checks from those returns. A Huntsville City Schools spokesperson confirmed Miller is a custodial worker at Columbia High School. Miller is on administrative leave, pending the outcome of the investigation. Douglas also assisted in the scheme.

Both women declined to comment after the hearing. If convicted they each face 10 years in prison and a $250,000 fine. 

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