A federal grand jury in Fort Worth has indicted four family members in a major Arlington tax fraud case, accusing them of orchestrating a multimillion-dollar scheme to defraud the U.S. government. The defendants, David Hunt of Arlington, his twin sons Brandon and Baylon Hunt, also of Arlington, and their half-brother Corey Burt of Mississippi, allegedly conspired to file false tax returns, seeking over $8.5 million in fraudulent refunds from the Internal Revenue Service (IRS). The indictment, unsealed on July 1, 2025, highlights the complexity of tax fraud schemes and the severe consequences for those involved.
[](https://www.justice.gov/opa/pr/four-family-members-charged-multimillion-dollar-tax-refund-fraud-scheme)[](https://www.fox4news.com/news/arlington-family-members-charged-multimillion-dollar-tax-refund-fraud-scheme)
Details of the Alleged Scheme
According to court documents, the fraud began in 2016 when the defendants applied for and received Employer Identification Numbers (EINs) from the IRS for purported businesses and trusts in Tarrant County. They allegedly used these entities to open bank accounts and file false tax returns claiming refunds to which they were not entitled. Collectively, the group sought over $8.5 million, successfully obtaining more than $1.7 million from the IRS. The funds were reportedly used to purchase luxury goods, cryptocurrency, and real estate.
[](https://www.dallasnews.com/news/courts/2025/07/02/north-texas-family-charged-in-multimillion-dollar-tax-fraud-scheme/)
Brandon and Baylon Hunt are further accused of submitting falsified financial instruments and altered money orders to the IRS to support their scheme. The indictment alleges that the defendants shared the proceeds by transferring money among themselves, complicating efforts to trace the illicit funds. The scale of the operation underscores the sophisticated methods used to exploit the tax system.
Charges and Potential Penalties
The defendants face serious charges, including:
- Conspiracy to Defraud the United States: Carries a maximum penalty of five years in prison.
- Aiding and Assisting in Preparing False Tax Returns: Each count carries a maximum penalty of three years in prison.
If convicted, each defendant could face significant prison time, along with restitution and monetary penalties. The IRS and the U.S. Department of Justice are seeking to recover the fraudulently obtained funds, emphasizing their commitment to combating tax fraud. The defendants have pleaded not guilty, and their attorneys have not publicly commented on the case.
[](https://www.fox4news.com/news/arlington-family-members-charged-multimillion-dollar-tax-refund-fraud-scheme)
Arlington’s Role in the Case
Arlington, a bustling city in North Texas, serves as the primary hub for this alleged tax fraud scheme. The city’s proximity to Fort Worth, where the federal grand jury convened, has placed it at the center of this high-profile case. The use of Tarrant County-based trusts and businesses highlights how local infrastructure can be exploited for fraudulent purposes. The case has drawn attention to the need for stronger oversight of EIN applications and tax return processing to prevent similar schemes.
“This indictment sends a clear message that tax fraud will not be tolerated,” said a spokesperson for the IRS Criminal Investigation unit. “We are committed to protecting taxpayers and ensuring the integrity of the tax system.” The case is being prosecuted by Assistant U.S. Attorneys in the Northern District of Texas, with support from the IRS-Criminal Investigation (IRS-CI) division.
[](https://www.justice.gov/opa/pr/four-family-members-charged-multimillion-dollar-tax-refund-fraud-scheme)
Broader Context of Tax Fraud in the U.S.
Tax refund fraud is a growing concern nationwide, with the IRS-CI reporting over $14.6 billion in alleged fraud across various schemes in 2025 alone. Similar cases have been prosecuted in states like Florida and New York, where individuals exploited false tax returns to claim millions in refunds. For example, a 2024 case in Florida saw two men sentenced to prison for a $3 million tax fraud scheme involving fabricated withholdings. These cases highlight the IRS’s increasing reliance on advanced data analytics and AI-driven audits to detect fraudulent activity.
[](https://www.irs.gov/compliance/criminal-investigation/two-florida-men-sentenced-in-multimillion-dollar-tax-refund-scheme)[](https://hoodline.com/2024/11/tampa-and-orlando-men-sentenced-for-multimillion-dollar-tax-refund-fraud-scheme/)[](https://www.irs.gov/compliance/criminal-investigation/criminal-investigation-press-releases)
In Texas, the problem is particularly acute due to the state’s large population and economic activity. A 2016 case in Austin involved five individuals charged with filing over 3,200 fraudulent tax returns seeking $9 million in refunds, demonstrating the persistence of such schemes. The Arlington case adds to this pattern, raising questions about how families and small groups can orchestrate large-scale fraud without early detection.
[](https://www.justice.gov/usao-wdtx/pr/five-individuals-arrested-and-charged-connection-fraudulent-multi-million-dollar-income)
Impact on the Community and IRS
The Arlington tax fraud case has significant implications for the local community and the broader tax system. The $1.7 million obtained by the defendants represents funds that could have supported public services, such as education and infrastructure, in Tarrant County and beyond. Community leaders have expressed concern about the reputational impact on Arlington, a city known for its economic growth and attractions like AT&T Stadium.
The IRS has intensified efforts to combat tax fraud, with IRS-CI achieving a conviction rate of over 90% in financial crime cases. The agency’s focus on sophisticated schemes, like the one in Arlington, involves collaboration with federal and state authorities to trace illicit funds and hold perpetrators accountable. The case also underscores the importance of public awareness about tax fraud, encouraging residents to report suspicious activity to the IRS.
Looking Ahead
As the Arlington tax fraud case proceeds, the legal process will likely draw further scrutiny to the defendants’ actions and the IRS’s response. The outcome could set a precedent for how similar cases are handled, particularly those involving family-based conspiracies. With the defendants pleading not guilty, the case is expected to go to trial, where prosecutors will present evidence of the fraudulent tax returns and financial transactions.
The case serves as a reminder of the importance of integrity in tax filings and the severe consequences of attempting to defraud the government. As Arlington continues to grow as a hub for business and innovation, maintaining public trust in its institutions remains a priority.
For more updates like this, contact Arlington Network.
