Role Reversal

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Parents have an enormous responsibility when it comes to raising their children to be a good citizen. It’s their job to instill character and instruct them on how to behave appropriately. Apparently, a Georgia woman and her incarcerated son reversed roles and the son became her boss, using his mother to commit tax fraud. The scam cost the Internal Revenue Service (IRS) nearly $200,000.

From his prison cell, the son directed his mother to set up multiple fictitious companies through the Georgia Secretary of State’s office. (That should have a been a red flag right there. Did she not realize what the consequences could be?)She assisted with filing false corporate income tax returns over six tax return years. The mom also opened up bank accounts for seven shell companies that existed only on paper.

The false tax returns were filed with bogus information on income, deductions, over payments and refunds due. The prisoner’s girlfriend also took part in the scheme. Together, the mom and son duo submitted about 100 tax returns to the IRS claiming more than $2 million in refunds. (The IRS paid out approximately $300,000 based on the false tax returns.)

It’s important to note that the incarcerated son had previously served five years in prison for drugging a victim. After trying to escape prison, he was sentenced to two more years in prison. (I guess he was bored while spending time behind bars, so he masterminded the tax return scheme to keep him busy. Idle hands are definitely not a good thing.)

The judge ordered the 55-year-old mother to serve five years of probation and pay $195,902 in restitution to the IRS.A condition of her probation prohibits her from having contact with any felons, including her 35-year-old son. The girlfriend is also scheduled to be sentenced.

Source: Today’s ”Fraud of the Day” is based on an article entitled, ”Woman who conspired with imprisoned son sentenced in $2 million tax scam,” published by The Denver Post on November 22, 2016.

A 55-year old woman who took orders from her son about how to set up a multi-million tax fraud scheme while he was in prison was sentenced to probation Tuesday in U.S. District Court in Denver.

Chief Judge Marcia Krieger sentenced Schosche Mucsarney to five years of probation and ordered her to pay $195,902 in restitution to the IRS. As a condition of her probation, Krieger prohibited Mucsarney from having any contact with felons.

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Larry Benson, Senior Director of Strategic Alliances, LexisNexis Risk Solutions - Government

Larry Benson is responsible for developing strategic partnerships and solutions for the government vertical. His expertise focuses on how government programs are defrauded by criminal groups, and the approaches necessary to prevent them from succeeding.

Mr. Benson has 30 years of experience in sales and business development. Before joining LexisNexis® Risk Solutions, he spent 12 years founding and managing two software technology startups. During the 1990s he spent 10 years as a Regional Director helping to grow a New England-based technology company from 300 employees to 7,000. He started his career with Martin Marietta Aerospace working on laser guided weapons and day/night vision systems.

A sought-after speaker and accomplished writer, Mr. Benson is the principal author of “Fraud of the Day,” a website dedicated to educating government officials about how criminals are defrauding government programs. He has co-authored WTF? Where’s the Fraud? How to Unmask and Stop Identity Fraud’s Drain on Our Government, and Data Personified, How Fraud is Changing the Meaning of Identity.

Benson holds a Bachelor of Science in Physics from Albright College, and earned two graduate degrees – a Master of Business Administration from Florida Institute of Technology, and a Master of Science in Engineering from Lehigh University.