Woman in Custody in $2 Million Tax Fraud Case
by Terri Eyden on
By Terri Eyden
Krystle Marie Reyes, who is accused of receiving a fraudulent tax refund from the state of Oregon, appeared before Marion County District Judge Joseph Ochoa in a Salem courtroom July 5.
Police arrested Reyes on June 6 on accusations that she filed a fake TurboTax electronic tax form claiming she earned more than $3 million in 2011 and was owed a $2.1 million refund. The Oregonian reported that "the size of the refund was red-flagged by the Oregon Revenue Department's automated checking system, but then approved after a manual check."
TurboTax issued Reyes a Visa debit card with $2.1 million on it, and she spent about $200,000 before reporting the card lost or stolen, according to court documents. The report of the lost card prompted a second review of her tax returns, which were then determined to be fraudulent.
The Oregon Department of Revenue has blamed what could be the biggest case of tax fraud the state has seen on "human error." Derrick Gasperini, spokesperson for the revenue department, said the results of the agency's internal investigation should be released sometime the week of July 9. The state has recovered about $1.9 million.
Andrew Campbell, a senior assistant attorney general appointed by the Marion County district attorney to handle the case, told Ochoa that investigators tracked purchases with the debit card at multiple locations, including a gun bought in Hermiston. Campbell asked the judge to set bail at $200,000, saying that Reyes is charged with serious crimes, facing "upwards of seven years in prison," and poses a flight risk.
Ochoa ordered Reyes be taken into custody and set bail at $50,000. According to a report by the Statesman Journal, "Reyes showed no emotion as Marion County sheriff's deputies placed her in handcuffs and escorted her to jail."
Reyes' next hearing is scheduled for July 13.
- Massachusetts Man in Prison for Filing False Tax Returns
- Woman Used Stolen Identities and Debit Cards to Obtain Tax Refunds
You may like these other stories...
A new report released on Tuesday found that the US airline industry receives nearly $1 billion in tax breaks annually from states for jet fuel.The study, conducted by UNITE HERE International Union, a labor union that...
Boehner, Camp profit from corporate bid to avoid US taxesRichard Rubin of Bloomberg reported on Tuesday that House Speaker John Boehner (R-OH) and House Ways and Means Committee Chairman Dave Camp (R-MI) profited from a...
The Republican civil war on taxes is comingA specter is haunting the Republican Party – the specter of Ronald Reagan’s tax cuts, Matt O’Brien of Washington Post Wongblog wrote on Friday.For the last 35...
Upcoming CPE Webinars
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.