The Right to Pay Taxes

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When an individual is convicted of a felony, they lose the right to vote, travel abroad, bear arms or own guns, serve on a jury, work in certain fields, public social benefits and housing and parental benefits. One of the rights that felons, not to mention the rest of us, would not mind losing is the requirement to pay taxes to the Internal Revenue Service (IRS). No such luck for a Binghamton, New York man who thought he’d outsmart the IRS through a tax refund fraud scheme he learned about while serving time in state prison.

The former state prisoner was serving time in state prison after being convicted of felony counts of criminal possession of a controlled substance, criminal sale of a controlled substance, attempted burglary and perjury, when he learned about a way to commit tax refund fraud. Court records show that the tax refund fraud scheme involved falsely claiming credits from the District Attorney’s Office that prosecuted the New Yorker.

Trial evidence shows that today’s defendant filed a tax return claiming $6,125,000 in income by falsifying Form 1099 OID, which notes withholding credits. He also claimed federal tax withholdings in the same amount, seeking the same amount in refunds. His actual income during the year he filed for was $3,127.36. (The IRS knew the correct amount of his income. Apparently, he was hoping they would not.) When the IRS reviewed the felon’s tax return, the agency sent correspondence requesting him to file a corrected return immediately. The felon did not do as he was asked and persisted in his efforts to obtain a $6,125,000 return. Fortunately, the IRS did not issue a refund.

The Binghamton drug convict, who was already in prison for unrelated crimes, originally pleaded not guilty to the tax fraud charges against him. However, the 40-year-old felon was convicted of tax refund fraud after a four-day trial. (This guy really has trouble with telling the truth.) When sentenced, he faces up to five years in prison in addition to the time he is already serving. Today’s criminal not only failed at swindling the government out of more than $6 million, but it’s a given that he will be under intense scrutiny from the IRS from now on. (At least he still has the right to pay his taxes. That’s one thing that will not be taken away from him.)

Today’s “Fraud of the Day” is based on an article entitled, “Binghamton man convicted of federal tax fraud,” posted on pressconnects.com on May 3, 2019.  

A Binghamton man was convicted Friday of federal tax fraud.

Kareem Young, 40, faces up to five years in prison and is scheduled to be sentenced Sept. 24 by Judge Thomas J. McAvoy.

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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.