Tax Refund Fraud to the Tune of $2.8 Million | AccountingWEB

Tax Refund Fraud to the Tune of $2.8 Million

Larreka Jackson was indicted by a federal grand jury in Alabama on twenty-five counts for conspiring to file false tax returns using stolen identities, filing false claims, wire fraud, and aggravated identity theft.

According to the indictment, Jackson operated a tax preparation business called "It's Tax Time," and she used the business as a front to file false tax returns using stolen identities.
 
After unlawfully obtaining the names and Social Security numbers of actual persons, Jackson filed false tax returns using those names, and she directed the fraudulent tax refunds to bank accounts controlled by her and her coconspirators.
 
In total, Jackson filed over 500 tax returns claiming over $2.8 million in fraudulent tax refunds.
 
If convicted, Jackson faces:
  • A maximum potential penalty of ten years in prison for the conspiracy to file false claims,
  • Five years for each false claim count,
  • Twenty years for each wire fraud count, and
  • A mandatory two-year sentence for the aggravated identity theft counts.
 
Jackson is also subject to fines and mandatory restitution if convicted.
 
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Source: August 15, 2012, US Department of Justice News Release
 
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