It was announced on Wednesday, by the U.S. Justice Department, that John R. Koesterman was arraigned on tax fraud, 12 counts of mail fraud as well as five counts of aggravated identity fraud.

49-year-old Koesterman was brought from the high-security penitentiary in Terre Haute, Indiana, where he was currently serving time, to face these new charges. He was indicted by an Anchorage Grand Jury on April 16th, 2013. He pled “Not Guilty” at his arraignment on Tuesday.

The indictment stemmed from alleged activities by Koesterman and his co-conspirators during a period between July 2009 and May 2011. It was during this time frame that Koesterman, while he was incarcerated, and at least four others that were not in the prison system, conspired to defraud the U.S. Government through the preparation of false tax returns. Those returns used the names of and identifying information of at least 28 individuals, many of whom were inmates, without their knowledge. A total of 55 false claims were filed totaling $275,127. Each false return claimed refunds in the thousands of dollars.

The indictment claims that Koesterman’s co-conspirators used the co-conspirator’s addresses and bank accounts, and in some cases power of attorney to obtain the federal funds. Returns were mailed to addresses in Anchorage, Denver, and Colorado Springs. It was in this manner that a total of $95,568 was obtained from the federal government.

In the indictment there is a stipulation that Koesterman, if convicted, must forfeit $5,787.75 from a bank account as well as $13,751 seized from a residence.

If convicted as a result of the investigation by the Internal Revenue Service, Koesterman faces up to 20 years in prison and a fine of up to $250,000.

Cases against Koesterman’s co-conspirators are pending according to Assistant District Attorney Retta-Rae Randall.