Two Georgia men pleaded guilty to a scam that used online tax software to claim hundreds of thousands in New York film tax credits, and federal and state investigators say the scheme targeted identities and credits meant for legitimate productions.
Two men from Tifton, Georgia admitted in federal court that they conspired to file fraudulent New York State tax returns claiming film production and post-production credits. Ryan Rugg, 28, pleaded guilty on July 22 to one count of conspiracy to commit wire fraud and faces up to 30 years in prison, followed by five years of supervised release and a $250,000 fine, with sentencing set for Oct. 29 in Albany.
Co-defendant Joshua Jordan, 37, previously pleaded guilty on March 26 to conspiracy to commit wire fraud and aggravated identity theft. Jordan faces a combined maximum that includes 30 years and a $250,000 fine for the wire fraud count, plus a consecutive two-year term and additional fines for aggravated identity theft, and his sentencing is scheduled for Sept. 3 in Albany.
Officials say investigators first flagged the activity on June 24, 2023 after a New York State Department of Taxation and Finance review identified 22 New York tax documents submitted by 18 Georgia residents. The returns raised red flags for out-of-state residency, first-time filer status, and other signs commonly associated with fraud, which triggered a deeper probe into how the credits were claimed and paid.
Court records and statements show Jordan created an account with an online tax preparation service in February 2023 and used that platform to prepare and file returns purporting to claim New York film tax credits. Investigators allege Jordan and Rugg filed credits for people who had never worked in New York and for productions that did not exist or did not incur qualifying expenses in the state.
The complaint details a specific scheme in which Jordan prepared a fraudulent return on April 18, 2023 for an individual identified as S.B., using that person’s Social Security number and other identifying information without permission. On May 4, 2023 Jordan allegedly called the New York tax department impersonating S.B. to check on the status of the fraudulent claim, which produced a payout of $49,772 from the state.
In total, the two admitted to obtaining or attempting to obtain more than $550,000 in state tax refunds through the conspiracy. “We are committed to protecting taxpayers by ensuring that tax credits designed to create and maintain jobs are used lawfully,” said U.S. Attorney William R. “Will” Keyes. “The Department of Justice’s National Fraud Enforcement Division remains focused on combating fraud. We will continue working closely with our law enforcement partners to prevent financial crimes and uphold the public’s trust.”
“Financial fraud is far from a victimless crime. Schemes like this divert public resources, exploit stolen identities, and erode confidence in programs designed to benefit legitimate businesses and workers,” said Thomas Clark, Supervisory Senior Resident Agent of FBI Atlanta’s Valdosta office. “The FBI and our partners will continue to aggressively investigate those who believe they can profit through deception and hold them accountable for their actions.”
New York State Acting Commissioner Amanda Hiller added a warning for would-be fraudsters, saying, “Let this serve as a warning to any taxpayers considering lining their pockets for personal gain. The defendants repeatedly submitted fraudulent tax records attempting to steal funds that drive New York State’s creative economy.” She praised state tax investigators and noted the collaboration with the U.S. Attorney’s office in pursuing the case.
U.S. District Judge W. Louis Sands is presiding over the matter, and court filings note there is no parole in the federal system. The FBI Atlanta Valdosta Resident Agency and the New York State Department of Taxation and Finance led the investigation, and the case is being prosecuted by Assistant U.S. Attorney Monica Daniels for the government.
