H&R Block Manager Arrested for Identity Theft of Tax Clients

An H&R Block manager in Southern California has been arrested for identity theft.  The stolen identities used were of his former tax preparation clients. Arrested by special agents with the IRS’s Criminal Investigation division is Damon Dubose of North hill Ca.

Dubose has been working as a manager for an H&R Block office in Van Nuys.  It appears that he used his position to access old client files to prepare bogus tax returns. He prepared bogus tax designed to obtain tax refunds and credits.  He then used H&R Block Emerald Cards to withdraw the fraudulently obtained refunds from automated teller machines.

In an article, written by Michael Cohn for Accounting Today,  H&R Block made the following comment. "H&R Block takes this matter very seriously," said H&R Block spokesman Gene King. "This was an isolated incident and we are cooperating fully with authorities on the investigation of a former employee. The situation involves a small number of clients who have been contacted and informed of the steps the company is taking to help them and correct the situation."

The way this guy was discovered is to say a little unusual to say the least.  He was noticed by a patrolman loitering near bank ATMs wearing pantyhose over his head.

In the search of Dubose’s vehicle, the officer found six envelopes with personal information and H&R Block Emerald Cards.  Emerald Cards allow H&R Block customers to access their tax refunds electronically like a debit card.

Dubose appeared in Court Thursday and was released on bond.  His next court appearance is April 30.

The notable thing is that almost every year there are stories of tax preparation service employees caught committing identity theft.  Perhaps it’s time to take a serious look at who you have doing your taxes.