CALIFORNIA – The U.S. Department of Justice (DOJ) announced an indictment was unsealed last week charging a California man with mail fraud and tax crimes in a refund fraud scheme.
According to the indictment, from 2016 to 2025, Melvin Louis Hughes of Los Angeles County, also known as “Melvin Louis Huges” and “Bandele El,” ran a scheme filing false federal tax returns for millions in fraudulent returns.
The indictment alleges Hughes filed fraudulent 1041 tax returns, claiming over $360 million in fake refunds based on fictitious income tax withholdings.
Hughes allegedly used fake 1099 forms to claim taxes were withheld by major banks and companies, seeking millions in fraudulent refunds.
In 2024 and 2025, Hughes allegedly filed false 1040 tax returns claiming over $370 million in refunds from fake withholdings.
Purchased Malibu home and cryptocurrency
Hughes allegedly collected about $6.2 million in tax refunds.
He allegedly used the money to buy a $1.84 million Malibu home, two Teslas, and $500,000 in cryptocurrency.
Hughes allegedly recruited at least 17 others, charging fees for his assistance in the scheme. He allegedly took 10% of refunds from at least five taxpayers, directing payments to a fake trust – Brother to Brother Outreach Trust, which he claimed was charitable.
Hughes allegedly received about $868,704 from taxpayers who used his scheme and caused about $13 million in tax losses to the IRS.
Faces up to 20 years for mail fraud
Hughes was charged with mail fraud, making false claims, and filing or aiding false tax returns.
If convicted, Hughes faces up to 20 years for mail fraud, five years per false refund claim, and three years per false or assisted tax return.
An indictment is an allegation. All defendants are presumed innocent until proven guilty.
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