Seven people have been indicted in a false tax refund conspiracy that was being run from inside prison walls. 

Four of the seven defendants were inmates at the California Correctional Center in Susanville at the time of the tax fraud scheme.

According to court documents, those involved obtained identification information from other inmates at the correctional center.

They then gave the information to three people on the outside where they filed false income tax returns to the IRS.

Assistant U.S. Attorney Sherri Hauf says approximately 247 false income tax returns were filed.  

"Resulting in the erroneous issuance of approximately 138 refunds, totaling over $219,000," she said. 

If convicted, each defendant faces 10 years in prison and a $250,000 fine.