Schemers are Dreamers


The primary function of the Internal Revenue Service’s (IRS) Scheme Development Center (SDC) is to detect suspicious criminal activity involving tax and related financial investigations and to assemble information on the suspected individuals and entities involved. (One of their responsibilities is to investigate tax return preparer fraud.) An article published in The Telegraph tells about a tax preparation business that got a surprise visit from some undercover investigators associated with the SDC.

The article explains that a woman, who operated a New York tax return preparation business, was visited by two undercover agents seeking to have their tax returns prepared. (Apparently, the owner falsified several schedules and education expenses on the two tax returns.) Further research revealed that the tax preparation business owner filed 492 federal income tax returns, which resulted in a loss of more than $1 M to the U.S. Treasury.

The 33-year-old woman pleaded guilty to two counts of making false claims and was sentenced to serve 46 months in prison followed by three years of supervised release. She also was ordered to pay $1,052,302.86 in restitution and serve 450 hours of community service.

Schemers are usually dreamers. They tend to focus on how much money they can get without regards to the impact it has on other honest taxpayers who faithfully pay their taxes every year. In this case, the schemer probably didn’t think about the consequences of getting caught. (Her once lucrative dream has now turned into a nightmare.)

Source: Today’s ”Fraud of the Day” is based on an article titled, ”Alton Woman Sentenced to Prison for Tax Fraud,” published by The Telegraph on April 18, 2015.

ALTON — An Alton woman, among 17 people facing federal indictments for tax fraud-related crimes, has been sentenced to serve 46 months in federal prison, followed by three years supervised release, and to repay more than $1 million as a result of her convictions for two counts of making false claims against the United States, U.S. Attorney Stephen R. Wigginton announced this week.

The woman, Aisha Wright, 33, originally waived the indictment against her and pleaded guilty Jan. 16 to two counts of making false claims against the United States.

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Larry Benson
Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.