CALIFORNIA – The U.S. Department of Justice (DOJ) recently unsealed an indictment charging Melvin Louis Hughes, a Los Angeles County resident, with mail fraud and tax crimes tied to a large refund fraud scheme.
Between 2016 and 2025, Hughes, also known by aliases “Melvin Louis Huges” and “Bandele El,” allegedly filed fraudulent federal tax returns, claiming over $360 million in fake refunds using false income tax withholding information.
According to the indictment, Hughes used fabricated 1099 forms to claim tax withholdings from major banks and companies, seeking millions in fraudulent refunds. In 2024 and 2025, he continued the scheme by filing false 1040 tax returns claiming over $370 million in refunds from fake withholdings.
Hughes reportedly collected approximately $6.2 million in illicit tax refunds, which he used to purchase a $1.84 million Malibu home, two Tesla vehicles, and $500,000 worth of cryptocurrency.
He allegedly recruited at least 17 others to participate, charging fees for his assistance. Hughes took 10% of refunds from at least five taxpayers, funneling payments through a fake charitable trust called Brother to Brother Outreach Trust.
The IRS estimates Hughes caused about $13 million in losses through his fraudulent activities. He faces charges of mail fraud, making false claims, and filing or aiding false tax returns.
If convicted, Hughes could face 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; Hughes is presumed innocent until proven guilty.
