In our last post we discussed the indictment of 55 Californians in tax fraud charges. This indictment is just one of many high profile tax fraud criminal cases being pursued against taxpayers across the country. One of the most recent tax fraud convictions happened last Thursday when a 47-year-old former tax examiner pleaded guilty to tax fraud in Washington D.C. Authorities say that the tax examiner went into almost 50 taxpayer's accounts and adjusted their refund credits. The tax examiner then routed the refunds into her personal bank accounts.
The examiner was able to do this because any amount under $10,000 did not require her supervisor's permission. The scheme was eventually uncovered by enhanced fraud detection techniques within the examiner's tax office. Irregular transactions by the tax examiner were reported and caused the FBI to become involved in the case.
"We are pleased that the internal controls we established in recent years, and the vigilance of the Office of Tax and Revenue staff, detected this breach," said D.C.'s Chief Financial Officer Natwar M. Gandhi. "Once we brought this matter to the attention of federal law enforcement, we worked closely with them to bring it to a conclusion.
The woman faces a prison sentence anywhere from 33 months up to 63 months. The woman's plea agreement also provides for a $410,000 restitution payment which represents the amount of fraudulent refunds she obtained for her personal benefit. It is unclear whether the restitution amount also includes the refunds that she obtained by filing false returns for others on the side.
Source: US Attorney's Office, "Former District of Columbia Government Tax Examiner Pleads Guilty in Scam Involving More Than $400,000 in Refunds Defendant Had Refunds Sent to Herself and Others -" Oct. 20, 2011