Georgia men plead guilty to wire fraud in $550,000 New York film tax credit scheme

Two Georgia men are facing decades in prison for a scheme attempting to steal more than $550,000 in New York film credits using faked tax filings.

Ryan Rugg, 28, and Joshua Jordan, 37, both pleaded guilty to conspiracy to commit wire fraud in federal court. Jordan also pleaded guilty to a count of aggravated identity theft.

Prosecutors say their investigation into the two men began in June 2023, when New York State Department of Taxation and Finance officials looked into 22 tax documents filed by 18 Georgia residents. Officials say the returns were flagged for reasons that included the applicants having out-of-state residencies or first-time filer status, as well as other fraud indicators.

During their review, authorities say they discovered that Rugg and Jordan either filed or helped others request refunds using New York film tax credits. However, the individuals had never worked in New York and had no costs connected with producing films or TV shows in the state. In one case, Jordan filed a fraudulent tax return for "S.B.," pretended to be the individual in a phone call to New York's tax department line, and eventually received a return of nearly $50,000 paid for by the state.

In all, officials believe that Jordan and Rugg either obtained or attempted to obtain more than $550,000 as part of the operation.

"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."

Both men face a maximum of 30 years in prison and a $250,000 fine for the wire fraud charge. Jordan also faces up to two years in prison to be served consecutively and another $250,000 fine for the identity theft charge.

Rugg and Jordan are scheduled to be sentenced on Sept. 3 in Albany, Georgia.