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| Highlights - 2006 Archive |
Ursula Nicole Moore Sentenced For Theft of Government Property at an IRS Lockbox Facility
On December 7, 2006, Ursula Nicole Moore was sentenced in the United States District Court, Northern District of Texas, Dallas Division, for one count of Theft of Government Property. She was sentenced to five years probation, restitution in the amount of $17,256.78 to be paid to various victims, and a $100 special assessment.
According to the court documents, in August 2006, Moore pled guilty to one count of Theft of Government Property from an Internal Revenue Service (IRS) Dallas Lockbox, where tax payments are mailed by taxpayers to designated post office boxes for processing by financial institutions under contract with the Government. Moore, a financial institution employee, removed without permission monetary instruments totaling approximately $29,770 from the IRS Dallas Lockbox, all payable to the IRS or a blank payee. Moore changed the payee to her name or inserted her name as payee on these instruments, endorsed them, and either cashed them or deposited them into her personal checking account.
Clarence G. Maxwell III Sentenced For Theft From the IRS
On December 13, 2006, United States (U.S.) Army Specialist Clarence G. Maxwell III, was sentenced in the U.S. District Court, Western District of Texas, for one count of Theft of Public Money. He was sentenced to five years probation, restitution in the amount of $11,276.51, and a $100 special assessment.
According to the court documents, from March 2005 to May 2005, in the Western District of Texas and elsewhere, Maxwell knowingly stole Internal Revenue Service (IRS) funds in the amount of $11,276.51. Specifically, Maxwell was assigned to the Fort Hood Tax Center assisting soldiers and their families in preparing and filing Federal income tax returns for Tax Year 2004. Maxwell assisted in preparing and electronically filing tax returns claiming refunds which contained information designating the taxpayers' bank accounts into which the IRS would wire the refunds. From March 2005 through May 2005, Maxwell altered five tax returns claiming refunds that he assisted in preparing, by falsely designating his own personal bank account as the account into which the IRS was directed to deposit the claimed tax refunds. Maxwell accessed the electronic versions of the tax returns, deleted the taxpayers' bank account information on the return, and substituted his own personal bank account information, all without the knowledge or authorization of the taxpayers.
Individual Sentenced for Theft of Government Property
On November 9, 2006, Douglas Grant was sentenced in the United States District Court, Northern District of Georgia, Atlanta Division, to 12 months and 1 day of imprisonment, 3 years of supervised release, and a $100 special assessment.
According to court documents, on January 9, 2003, Grant embezzled, stole, purloined, and knowingly converted to his use a check in the amount of $2,289 originally made payable to the Internal Revenue Service.
Criminal Complaint Filed Charging an Individual with Two Counts of Theft of Government Property
On November 29, 2006, a criminal complaint was filed in the Eastern District of California charging LaShanda Myles with two counts of Theft of Government Property.
According to court documents, on February 18 and 19, 2003, Myles allegedly stole or otherwise obtained two money orders from the Internal Revenue Service and converted such monies for personal gain.
Tax Preparer Indicted for One Count of Bank Fraud
On November 21, 2006, Harold Slawson, doing business as National Tax Services, and John Lambert, Jr., doing business as #1 Truck Stop, were indicted in the United States District Court, District of South Carolina, Columbia Division, on one count of Bank Fraud.
According to the indictment, in December 2001, Slawson and Lambert executed a scheme and artifice to defraud and obtain monies and funds by means of false and fraudulent pretenses, representations and promises. According to the indictment, Lambert received from the National Bank of Commerce (NBC) a check in the amount of $650,100, representing the proceeds of a mortgage loan. In furtherance of the scheme, Slawson prepared two sets of tax returns for Lambert. The first set of tax returns was meant to be filed with the Internal Revenue Service and maintained for #1 Truck Stop. The second set of tax returns fraudulently specified that #1 Truck Stop generated a profit, and was presented and used to obtain a mortgage loan from the NBC.
Former Revenue Agent Sentenced for Charges of Conspiracy and Causing the Failure to File Currency Transaction Reports
On November 28, 2006, Clarence Walker, a former Internal Revenue Service Revenue Agent (RA), was sentenced in the United States (U.S.) District Court, Northern District of California, Oakland Division, for conspiracy and causing the failure to file Currency Transaction Reports (CTR). He was sentenced to 40 months in prison, followed by 36 months probation (the first 12 of which will be served via home confinement), a $30,000 fine, and a $200 special assessment.
According to the Court documents, Walker's official duties as a RA included educating and monitoring check-cashing stores, convenience stores, liquor stores, and other businesses that cashed checks; and ensuring that they complied with the requirements to file CTRs for all cash transactions over $10,000. The purpose of this requirement was to enable the U.S. Government to monitor the flow of cash linked to illegal activity and detect possible violations of revenue and other laws.
From the period September 2000 through March 2002, Walker conspired with others to evade the CTR requirements in order to facilitate a company's efforts to obtain large quantities of cash so it could conduct its business of distributing illegitimate software. Walker used his position as a RA to evade the CTR reporting requirements by cashing over $400,000 in checks at businesses that he monitored and directing the store owners not to file the CTRs.
Former IRS Employee Sentenced for the Unauthorized Inspection of Returns or Return Information
On November 1, 2006, former Internal Revenue Service (IRS) employee Terri Ward was sentenced in the United States District Court, Eastern District of California, for the unauthorized inspection of returns or return information. She was sentenced to 12 months probation, $25 assessment, $500 fine, and 100 hours community service.
According to Court documents, between February 16, 2000, and May 30, 2004, Ward, while an employee of the IRS, made numerous unauthorized accesses to inspect tax return information of private individuals without the authorization of the IRS and/or the private individuals
Former IRS Revenue Officer Charged with Bank Fraud
On November 6, 2006, an Information was filed charging former Internal Revenue Service Revenue Officer Richard Brechmacher with bank fraud for operating a check-kiting scheme.
According to the Information, from January 27, 2004, through June 30, 2004, in the United States District Court for the Northern District of Ohio, Western Division, Brechmacher knowingly devised a scheme to defraud Sky Bank and the First National Bank of Pandora and obtained money and funds under the custody and control of these banks by means of false and fraudulent pretenses and representations. Brechmacher allegedly engaged in a check-kiting scheme in which he created fictitious balances in checking accounts and obtained false credit by making deposits to and between the two banks on approximately 101 occasions. The deposits contained approximately 101 worthless checks totaling approximately $191,050, causing a loss to Sky Bank of $9,350.
Taxpayer Arrested for Bribery of an IRS Official
On November 21, 2006, Special Agents of the Treasury Inspector General for Tax Administration arrested Yan Borr for bribery of a public official.
According to court documents, from December 3, 2004, through September 19, 2006, in the United States District Court, Eastern District of New York, Borr knowingly, intentionally, and corruptly gave, offered, and promised U.S. currency to a person acting on behalf of the Internal Revenue Service (IRS) with the intent to influence his or her official acts.
During several meetings, Borr and IRS Revenue Officers (RO) discussed his outstanding IRS tax liabilities. Borr indicated that he could not fully pay the outstanding tax liabilities, which were approximately $15,000, and indicated that he had a couple of "bonds" that he could cash and give to the RO if the RO could take care of his situation. At another meeting, Borr met with another RO and gave the RO an envelope containing $1,000 in exchange for the reduction of his tax liability from approximately $22,000, to approximately $8,500. Borr then offered and gave the RO an additional $500 to reduce the tax liability by an additional $2,000.
IRS Employee Pled Guilty to One Count of Theft of Government Funds
On October 30, 2006, Shelley Thompson, an Internal Revenue Service (IRS) seasonal employee, pled guilty to one count of Theft of Government Funds in the Eastern District of California.
According to court documents, from February 22, 2004, to March 19, 2004, Thompson caused a tax refund intended for taxpayers to be deposited directly into her bank account. Thompson did this by preparing and signing the taxpayers' 2003 joint U.S. Income Tax Return (Form 1040A). She also provided her bank account information as the location for the refund to be directly deposited. Thompson did this without the knowledge or consent of the taxpayers. She received a tax refund of $5,048 that was intended for the taxpayers.
Tax Preparer Indicted for Income Tax Fraud and Forgery of a U.S. Treasury Check
On November 6, 2006, Linda Connie Lister was indicted by a Federal Grand Jury in the Western Judicial District of Kentucky on six counts of Income Tax Fraud and five counts of Forgery of an Endorsement on a U.S. Treasury check.
According to the Indictment, Lister willfully aided and assisted in the preparation and presentation to the Internal Revenue Service U.S. Individual Income Tax Returns (Forms 1040, 1040EZ, and 1040X) that were false and fraudulent as to material matters. The false and fraudulent tax returns represented that the taxpayers were entitled under the provisions of the Internal Revenue laws to claim either deductions, net business losses, net business profits, or filing status for items and amounts, whereas Lister knew and believed the taxpayers were not entitled to claim the deductions, losses, profits, or filing status. Lister also falsely forged endorsements on U.S. Treasury checks.
Former IRS Employee Sentenced on One Count of Theft of Government Property
On October 30, 2006, former Internal Revenue Service (IRS) employee Nneka Labon-Holloway was sentenced on one count of theft of Government property. Labon received one year of probation, was fined $1,000, and was ordered to pay an assessment of $25 and restitution to the IRS in the amount of $2,254.61.
According to the court documents, from April through December 2005, Labon knowingly and willfully stole and converted to her own use $1,000, which belonged to the United States (U.S.) and the IRS, her employer. On August 3, 2006, a Criminal Information was filed in the U.S. District Court for the Western District of Michigan, charging Labon with violating one count of theft of Government property. On August 4, 2006, Labon entered a guilty plea to the Criminal Information.
Individual Indicted for False Personation and Wire Fraud
On November 2, 2006, Bonnie Sharrit was indicted by a Federal Grand Jury in the District of Massachusetts for 3 counts of False Personation and 10 counts of Wire Fraud.
According to the Indictment, Sharrit engaged in a scheme to defraud a company by billing it for false and unnecessary services and expenses. Sharrit represented to the company that the company and its principals had certain tax problems resulting in the imposition of Government liens and levies, and that she could assist in the resolution of the matters based upon her status as a contract auditor for the Internal Revenue Service (IRS) and her tax expertise. Sharrit induced the company to retain her to resolve the alleged tax problems. Sharrit prepared and sent to the company numerous fictitious documents concerning the alleged tax issues, purportedly prepared by various Government agencies, including the IRS. Some of these documents purportedly reflected that Sharrit made settlement payments to the Government in connection with the alleged outstanding tax liabilities. In particular, Sharrit made efforts to conceal the fraud by preparing and sending to the company at least one letter and five email messages from purported IRS employees through which she attempted to bolster her credibility with false representations regarding her educational and professional background and expertise.
As a result, Sharrit fraudulently induced the company to issue payments to her for claimed expenses, hourly wages, and settlement of outstanding liabilities with various government agencies. Pursuant to the foregoing scheme, beginning no later than September 11, 2003, and continuing until October 7, 2003, the company issued payments to Sharrit in the amount of $46,687.59. Despite Sharrit's representations, Sharrit did not pay any of this money to any Government agencies and she did not perform any services for the company in connection with any of the alleged tax problems.
Issaiah Williams indicted for theft of Federal Government property
On October 26, 2006, Issaiah Williams was indicted in the Northern District of California. According to court documents, Williams was charged with one count of Theft of Government Property of Federal income tax refunds paid by the Internal Revenue Service (IRS) and the Department of the Treasury, totaling approximately $13,757. The indictment alleges that Williams knowingly embezzled and converted to his use money belonging to the United States and that he retained such money with the intent to convert it to his gain. A criminal summons for Williams' appearance in Federal court was issued on October 27, 2006.
Individual sentenced for bribing an IRS employee
On October 12, 2006, Ming Liou was sentenced in the Southern District of Ohio. According to court documents, Liou knowingly and intentionally attempted to unlawfully influence an official act; and directly and indirectly gave, offered, and promised a thing of value – a designer purse and $5,000 – to an IRS official. Liou was sentenced to 12 months and 1 day of imprisonment, a $10,000 fine, and a $100 special assessment.
Individual pled guilty to the theft of Federal Government funds and conspiracy
On October 31, 2006, Evette Parker, pled guilty to one count of Theft of Government Funds and to one count of Conspiracy, in the District of New Jersey. According to court documents, from approximately January 15, 2002, to March 20, 2003, Parker and her codefendant knowingly and willfully conspired to embezzle and convert to their own use money totaling $1,000, a thing of value of the United States. As part of the conspiracy, Parker would solicit taxpayers and for a fee would prepare and file their tax returns, in which she falsely claimed that the taxpayers had authorized their refund checks to be deposited into bank accounts controlled by Parker and her codefendant. Parker and her codefendant would then convert the funds to their own use by withdrawing, transferring, and spending the money. The affected taxpayers thought they would receive their refunds in the form of paper checks.
Internal Revenue Service (IRS) employee pleads guilty to fraud and theft charges
On October 6, 2006, IRS employee Cheyvellia James pled guilty to fraud and theft charges relating to Insurance Fraud in The Court of Common Pleas of Montgomery County, Pennsylvania. According to the court documents, an investigator from the Pennsylvania Attorney General's Office (Insurance Fraud Section) reported to a Treasury Inspector General for Tax Administration (TIGTA) Special Agent that James allegedly worked for the IRS as a temporary/seasonal employee while simultaneously collecting disability benefits in 2003 and 2004. The investigator alleged that James received disability benefits from an insurance company in the amount of $17,058.41 for the time period of May 2003 through March 2004 that she was not entitled to receive due to her employment with the IRS.
In support of the investigation, the TIGTA Special Agent secured James' IRS time records for the time periods in question and confirmed that James was employed by the IRS during the periods she was collecting disability benefits. James subsequently admitted that while she was receiving disability payments, from the insurance company, she was also working part time at the IRS and full time at another company.
Individual sentenced for the misuse of Department of the Treasury symbols
Margaret Salazar was sentenced in United States District Court for the Central District of California to 12 months' probation, a $3,500 fine, and a special assessment of $25. According to the plea agreement, Salazar pled guilty in July 2006 to creating a false levy release and using it with the intent to cause monies levied by the IRS to be released to her business, instead of the United States. The false levy caused a payment of $8,550 to be paid to Salazar's company, rather than the United States Government.
Russell W. Bradd II Sentenced for Conspiracy to Defraud the IRS
On September 20, 2006, Russell W. Bradd II was sentenced in the Northern District of Illinois to 18 months confinement, 36 months supervised release, and $275,182.00 restitution.
According to the court documents, beginning in and around April 1996 and continuing to at least July 2001, Bradd conspired and agreed with codefendants to defraud the IRS by obtaining the payment of false, fictitious, and fraudulent claims, in the form of federal income tax refunds. Bradd acknowledged that he caused to be filed at least one hundred false federal tax returns where the total amount of refunds claimed was at least $362,691 and of which the total the IRS actually paid was approximately $275,182.
Former IRS Employee Arrested for Theft of Government Property
On October 3, 2006, Mary Austin, former Internal Revenue Service (IRS) employee, was arrested in the District of Arizona for Theft of Government Property. During Austin's initial appearance on October 4, 2006, she was released from custody on her own recognizance. According to the court documents, Austin was charged with 10 counts of Theft of Government Property valued collectively at approximately $5100.00. The indictment alleges that Austin willfully and knowingly embezzled and converted to her own use money, property of the United States, that had come into her possession as a result of her employment at the IRS.
IRS Employee Sentenced for Making a Material False Statement in Connection with the Purchase of a Firearm
On September 26, 2006, Edwin Chavis, Internal Revenue Service (IRS) employee, was sentenced to home confinement with electronic monitoring for 6 months and 3 years probation. Chavis was ordered to participate in a substance abuse treatment program, mental health counseling, if deemed necessary by the U.S. Probation Office, and to avoid any contact, oral or written, with his co-defendant. Chavis was also ordered to pay a $100 special assessment.
According to the Indictment, Chavis was charged with executing a Department of Treasury, Bureau of Alcohol, Tobacco and Firearms Form 4473, Firearms Transaction Record, to the effect that was the true purchaser of 2 Bushmaster .233 caliber rifles, whereas in fact he was not the true purchaser.
Wisconsin Man Arrested for Making a Threat to an IRS Employee
Todd Schulze, was arrested at his residence and was charged with knowingly and unlawfully transmitting in interstate commerce from Wisconsin to New York a telephone communication to an Internal Revenue Service (IRS) employee during which he made a threat to the IRS employee.
According to the affidavit of the TIGTA Special Agent, Schulze, indicated, in a recorded conversation with an Internal Revenue Service (IRS) Brookhaven Service Center employee, that he was upset with the IRS auditor in Madison that had handled his case and also stated "I'm a little concerned about this because this is strictly a matter where you want to call to seize my account, and if you do that, I'll start killing people and you can record that." Based on this threat, the IRS Taxpayer Assistance area in Madison, Wisconsin, was shut down from 1:00 p.m. to 4:30 p.m. on October 5, 2006.
IRS Employee Indicted for Theft of HUD Rental Subsidy Payments
On September 26, 2006, Cynthia Braxton, Internal Revenue Service (IRS) employee, was indicted by a federal Grand Jury in the Eastern District of Pennsylvania, and was charged with 3 counts of False Statements and 1 count of Conversion of Government Funds.
According to the Indictment, from approximately October 21, 1999, through January 31, 2006, Braxton submitted three Applications for the Housing Choice Voucher Program (HCV Program) for the Tenant Eligibility and Recertification under the Housing Choice Voucher Program (HCV Program) administered by the Housing and Urban Development (HUD) agency. Families participating in the HCV Program select and lease housing from private owners. The HCV Program uses federal HUD funds to subsidize the families' rental payments. Braxton signed each Application, certifying the accuracy of its contents, and reviewed each Application in person with an HCV Program official. Braxton's rental subsidy payments of $18,744.00 were approved based on these Applications. Braxton failed to disclose her employment and earned income as an employee of the IRS on her HUD Applications.
Individual Sentenced for Bribing an Internal Revenue Service (IRS) Employee
On September 20, 2006, Segundo Palaquibay was sentenced in the Southern District of New York for bribery. According to Court documents, Palaquibay unlawfully, willfully, knowingly, and corruptly gave something of value to a public official with the intent to influence an official act and to induce the public official to act in violation of the lawful duty of such public official. Palaquibay gave an Internal Revenue Service (IRS) Revenue Agent $200 and $250 on two separate occasions in order to obtain a favorable result in a pending IRS audit of Palaquibay's 2000 and 2001 income tax returns, in an attempt to avoid payment to the IRS of approximately $60.000. Palaquibay was sentenced to twelve months and one day incarceration, three years of supervised release, court ordered restitution in the amount of $61,744.87 and a $100 special assessment.
Individual Indicted for Corruptly Obstructing and Impeding the Due Administration of the Internal Revenue Laws
On September 27, 2006, Claudie Baker was indicted in the Western District of Louisiana, Shreveport Division, for corruptly obstructing and impeding the due administration of the Internal Revenue laws and attempting to pass false and fictitious financial instruments. According to the Court documents, beginning on or about February 18, 1998, and continuing until on or about August 15, 2005, Baker filed in excess of 30 documents, complaints, pleadings, affidavits, Redress of Grievance for Violations of Constitutional Rights and correspondence, with the Caddo Parish Recorder of Deeds, the Clerk of Court for the United States District Court and the Internal Revenue Service (IRS). Baker, on two occasions, also with intent to defraud passed false and fictitious instruments entitled "Registered Bill of Exchange" payable to the IRS in amounts of $223,996.20 and 120,829.36, purporting to be actual financial instruments issued under the authority of the United States. In furtherance of the scheme, Baker sent written instructions that the false and fictitious Registered Bills of Exchange were to be used to pay IRS fines and back taxes.
IRS Employee Indicted for Fraud and Related Activity with Computers, Unauthorized Inspection and Disclosure of Returns or Return Information and Conspiracy
On September 19, 2006, Jean Christian, Internal Revenue Service (IRS) employee was indicted for 13 counts of fraud and related activity with computers, unauthorized inspection and disclosure of returns or return information and conspiracy to defraud the United States. Benjamin Hunter, who resides with Christian, was indicted for 11 counts fraud and related activity with computers, conspiracy to defraud the United States, and attempts to interfere with the administration of the Internal Revenue laws.
According to the Court documents, from on or about February 14, 1997, and continuing to on or about April 15, 2004, in the Eastern District of Virginia, Christian and Hunter willfully and knowingly conspired and agreed together to commit offenses against the United States. Christian knowingly and willfully accessed unauthorized taxpayer information from IRS computers and disclosed that information to a person not authorized by statute to receive it, Hunter. Christian exceeded her authorized access to the IRS's Integrated Data Retrieval System (IDRS) computer numerous times to obtain financial information from the accounts of five taxpayers and then disclosed that information to Hunter.
On or about April 11, 2006, in the Eastern District of Virginia, Hunter, did by threats of force endeavor to intimidate and impede two TIGTA Special Agents while acting in their official capacities under Title 26, United States Code.
IRS Employee Pleads Guilty to Unauthorized Access to a Computer
On September 20, 2006, Paul Salgado, Internal Revenue Service (IRS) employee, pled guilty to one count of Unauthorized Access to a Computer. According to the court documents, during the period of December 31, 2003, through September 19, 2005, Salgado, as an IRS employee, intentionally exceeded his authorized access to the Internal Revenue Service Data Retrieval System, and obtained tax return information of his former roommate from that system.
Former IRS Employee Charged with the Theft of Government Property
Therese Rivers, former Internal Revenue Service (IRS) employee, was charged on September 20, 2006, with one count of Theft of Government Funds. According to the court documents, Rivers embezzled and knowingly converted to her own use, a thing of value of the United States, that is $20,135.00 that a taxpayer sought to apply to his tax obligations. The taxpayer filed a tax return with the IRS with the instructions that the IRS apply prior tax overpayments in the amount of $20,135.00 to his other tax obligations. Instead of processing the tax return as Rivers was required to do, she altered the tax return and made it appear that the taxpayer sought a refund of the tax overpayments and had asked the IRS to deposit the refund into a bank account that Rivers had previously opened under a false name and by using a stolen identification card.
IRS Employee Charged with Making False Statements
Theresa Holland, Internal Revenue Service (IRS) employee, was charged with knowingly and willfully making materially false, fictitious, and fraudulent statements and representations. According to court documents, Holland told her IRS manager that she received a telephone call from a taxpayer, and, during the telephone call, the taxpayer threatened that he would come to New York and bomb the IRS Brookhaven Service Center. The IRS telephone software had recorded the phone call between Holland and the taxpayer. No threat had been made during the telephone call between Ms. Holland and the taxpayer.
Former IRS Employee Charged with the Unauthorized Inspection of Tax Returns or Return Information
On September 13, 2006, an Information was filed against Michael Glenn Womack, former Internal Revenue Service (IRS) employee. The Information charged that on or about October 10, 2001, Womack, as an IRS employee, willfully, unlawfully and without authorization, accessed and inspected financial information from the IRS tax account of a taxpayer.
Three Individuals Sentenced for Conspiracy Involving Stolen IRS Refund Checks
During an ongoing TIGTA investigation into a scheme that involved nine suspects who were stealing and negotiating Internal Revenue Service (IRS) tax refund checks, three individuals, Rony Revange, Wendy Duton, and Stanley Theodore were sentenced in September 2006.
According to court documents, Revange, Duton, and Theodore were sentenced for their pleading guilty to knowingly and intentionally conspiring to obtain stolen IRS tax refund checks and to deposit such checks in bank accounts in order to obtain the proceeds. Revange and Duton were identified as ring leaders in furtherance of this scheme.
Revange was sentenced on September 7, 2006, to 24 months incarceration, followed by three years supervised release and ordered to pay $51,000 in restitution, a $1,500 fine and $100 in court costs. Duton was sentenced on September 7, 2006, to 6 months incarceration, 6 months community confinement, followed by two years supervised release and ordered to pay a $1,500 fine and $100 in court costs. Theodore was sentenced on September 11, 2006, to 7 months incarceration, 7 months community confinement followed by two years supervised release and ordered to pay $51,000 in restitution, a $1,500 fine and $100 court costs.
IRS Employee Charged with the Unauthorized Inspection of Returns or Return Information
On September 8, 2006, an Information was filed against Annabel Quiroz, Internal Revenue Service (IRS) employee. The Information charged that during the period of January 12, 2004 through October 4, 2005, Quiroz, as an IRS employee, unlawfully and without authorization, accessed and inspected the tax returns of ten private individuals.
IRS Employee Charged with the Unauthorized Inspection of Returns or Return Information
On September 8, 2006, an Information was filed against Linda Simmons, Internal Revenue Service (IRS) employee. The Information charged that during the period of January 28, 1997 through October 31, 2005, Simmons, as an IRS employee, unlawfully and without authorization, accessed and inspected the tax returns of three individuals.
Former IRS Employee Indicted for Theft of Government Property
Mary Austin, former Internal Revenue Service (IRS) employee, was indicted on September 06, 2006. The Indictment charges Austin with 10 counts of Theft of Government Property valued collectively at approximately $5100.00. According to the court documents, Austin willfully and knowingly embezzled and converted to her own use money, property of the United States, that had come into her possession as a result of her employment at the IRS.
Thanh Nguyen Sentenced for Bribing an IRS Employee
On August 31, 2006, Thanh Nguyen of Syracuse, New York, was sentenced to pay a fine of $2000.00 and a special assessment fee of $100.00. As a result of a previously filed plea agreement with the US Attorney's Office for the Northern District of New York, Nguyen pled guilty to a one count Information charging him with paying a gratuity to an Internal Revenue Service (IRS) representative. On March 8, 2005, after he learned that his 2002 individual income tax return was being reviewed by the IRS, Nguyen paid the IRS representative $2000.00 in exchange for a "no change" letter from the IRS indicating that the IRS would not seek to impose any additional taxes or penalties for the period being reviewed.
Timothy Watson Indicted for Making Threat Against Internal Revenue Service Employee
On August 29, 2006, a federal Grand Jury in North Carolina indicted Timothy Watson on two counts of threatening to murder an Internal Revenue Service (IRS) employee. According to the court documents, Watson threatened to assault and murder the IRS employee, with intent to intimidate, interfere with, and retaliate against the IRS employee on account of the performance of his official duties.
Ursula Nicole Moore Pleads Guilty to Theft of Government Property at an IRS Lockbox Facility
In August 2006, Ursula Nicole Moore pled guilty in Texas to one count of Theft of Government Property from the Internal Revenue Service (IRS) Dallas Lockbox, where tax payments are mailed by taxpayers to designated post office boxes for processing by financial institutions under contract with the government. Moore, a financial institution employee, removed, without permission, monetary instruments totaling approximately $29,770 from the IRS Dallas Lockbox, all payable to the IRS or a blank payee. Moore changed the payee to her name or inserted her name as payee on these instruments, then endorsed them and either cashed them or deposited them in her personal checking account.
Cassandra Coulbourne Arrested for Stealing Taxpayer Monies from the IRS
In August 2006, pursuant to an arrest warrant issued in New York, Cassandra Coulbourne was arrested in Florida for theft of government property in the form of remittances from taxpayers who owed money to the Internal Revenue Service (IRS). According to court documents, Coulbourne, an employee with the IRS for approximately 25 years, while serving as a Tax Specialist was authorized to accept personal checks and money orders from taxpayers on behalf of the IRS. The court documents allege that Coulbourne received money orders from taxpayers valued at approximately $1,500, and converted them to her own use by cashing them, depositing them in her personal bank account, or using them to pay her rent.
IRS Employee Sentenced for Bringing a Gun into an IRS Facility
In August 2006, IRS employee Helen Foster was sentenced by the Third Judicial Circuit for the State of Michigan to two years probation, 20 hours of community service, and the payment of court costs in the amount of $705, after attempting to bring a firearm into the IRS Detroit Computing Center.
According to court documents, Foster attempted to enter the facility on April 26, 2006, with a .38 caliber Smith & Wesson handgun inside her bag. Upon entering the building, Foster placed her bag on an X-ray machine located inside of the facility. A security guard monitoring the X-ray machine noticed the handgun, resulting in a notification to TIGTA. During an interview by TIGTA special agents, Foster admitted that she obtained the handgun from another individual and that she did not have a concealed carry permit for the weapon.
Former IRS Employee Pleads Guilty to the Unauthorized Inspection of Tax Returns or Tax Return Information
In August 2006, former IRS employee Terri Ward pled guilty in the Eastern District of California to the unauthorized inspection of tax returns or tax return information. According to court documents, between February 16, 2000 and May 30, 2004, Ward, while employed by the IRS, made numerous unauthorized accesses to inspect tax return information of private individuals without the authorization of the IRS and/or the private individuals.
Individual sentenced for fraud in a scheme involving false representations about the ability to "fix" a pending criminal tax investigation
In August 2006, Greg Takesian was sentenced after pleading guilty in May 2006 to wire fraud and making a false statement to Federal investigators. Between October 2002 and April 2003, Takesian and two co-schemers participated in a scheme to obtain money from an individual by fraudulently representing their ability to "fix" a pending criminal tax investigation against the individual. Takesian, upon learning that the individual was the subject of a criminal tax investigation, informed the individual that he had a friend who knew someone who could help the individual.
During a meeting between Takesian, one of his co-schemers, and the individual, the co-schemer informed the individual that he knew a former high government official who might be able to end the investigation against the individual. The individual subsequently provided Takesian with a check for $20,000, which Takesian deposited in his escrow account at a bank. In November 2002, Takesian wired $15,000 from his escrow account to the bank account of one of the co-schemers, and Takesian gave a check in the amount of $4,700 to the other co-schemer.
In December 2002, Takesian and his two co-schemers met with the individual who previously gave Takesian the $20,000. During the meeting, one of the co-schemers stated that he was a former IRS special agent and the he would soon cause the investigation against the individual to end. Takesian, in a subsequent conversation with the individual in April 2003, stated that his co-schemer who claimed to be a former IRS special agent, was "the guy running the show" and the "only one that can fix this problem".
In August 2003, Takesian falsely stated to federal agents that the $20,000 given to him by the individual represented a consulting fee and that the money was still in Takesian's bank account. Takesian also stated to the federal agents that he did not know of any conversations that the individual had with one of the co-schemers.
According to the court documents, Takesian also made a false statement to federal agents when he claimed that he did not know the whereabouts of a fugitive from the law, when in truth Takesian did have knowledge of the fugitive's location.
In August 2006, Takesian was sentenced in US District Court to a term of two years probation, the first two months of which shall be under home confinement; a special assessment of $200, and a fine of $3000.
Individual Sentenced for Threatening a TIGTA Special Agent
In August 2006, David J. D'Addabbo pled guilty to threatening a Federal official. According to court documents, D'Addabbo threatened to assault and murder a TIGTA special agent subsequent to being placed under arrest by the special agent. D'Addabbo made the threat with the intent to retaliate against the special agent in connection with the performance of his official duties.
An April 2006 superseding indictment also charged D'Addabbo with corruptly endeavoring to obstruct and impede the due administration of the Internal Revenue laws, mailing threatening communications, and threatening Federal officials. According to court documents, D'Addabbo allegedly signed and filed a petition in September 2005 with the United States Tax Court threatening an IRS employee. D'Addabbo allegedly stated in the petition that if the IRS employee persisted in his efforts to collect income taxes from another individual, the IRS employee would be "tried by a jury and your penalty will be sought for it to be death by firing squad." D'Addabbo also allegedly filed a second petition with the United States Tax Court in October 2005 that purported to order the IRS to return all monies collected from another individual and to stop all liens and levies. In this second petition, D'Addabbo allegedly made statements warning that anyone attempting to collect taxes would be "tried by a jury of common people,” and that “You then could be found guilty of treason and taken immediately to a firing squad.”
At sentencing in August 2006 for threatening a federal official, D'Addabbo was given credit for time already served in prison, and three years supervised release conditional on his participation in anger management counseling and adherence to his prescribed medication regimen. D'Addabbo also agreed to pay a special assessment fee of $100.
Mellon Bank Enters Settlement Agreement Over Destroyed Tax Returns
Mellon Bank, N.A. (Mellon) entered into a Settlement Agreement regarding the April 2001 destruction of over 77,000 tax returns and payments at the Mellon Client Service Center in Pittsburgh.
View the press release for more information.
Individual Arrested for Making Threat Against Internal Revenue Service Employee
Timothy Watson was arrested in North Carolina, by TIGTA Special Agents, for making threats against an Internal Revenue Service (IRS) employee, in July 2006. According to the Criminal Complaint, Watson threatened to assault and murder the IRS employee, with intent to intimidate, interfere with, and retaliate against the IRS employee on account of the performance of his official duties. Watson made an initial appearance in court to answer the charges and was detained until further court proceedings.
Individual Indicted for Witness Tampering
Shawn Gibson was indicted in July 2006, in the Eastern District of Michigan, for Tampering with a Witness. According to the indictment Gibson knowingly, intentionally and unlawfully attempted to intimidate, threaten, and corruptly persuade another person to withhold testimony, records, documents and other objects from an official Internal Revenue Service and Grand Jury investigation.
Individual Pleads Guilty to Misuse of the Department of the Treasury Symbols
Margaret Salazar pled guilty, in the Central District of California, to Misuse of the Department of the Treasury Symbols, in July 2006. According to the plea agreement, Salazar created a false levy release and used it with the intent to cause monies levied by the Internal Revenue Service to be released to her business, instead of the United States. The false levy caused a payment of $8,550 to be paid to Salazar's company, rather than the United States government.
Individual Sentenced for Misprision of a Felony
Edward Wooster was sentenced in the Middle District of Pennsylvania to 5 years probation and was required to pay restitution of $50,024.65 to the victim of the crime. The July 2006 sentence is the result of a guilty plea to Misprision of a Felony, namely the corrupt obstruction and interference with the due administration of the internal revenue laws related to the failure to file, account for, and pay over employee trust fund tax returns and taxes. According to court documents, Wooster concealed the illegal activity by knowingly making false entries in a bookkeeping ledger, willfully failing to inform management about the failure to file, account for and pay over tax returns and taxes, and willfully refusing to meet with IRS examiners.
Former Internal Revenue Service (IRS) employee pleads guilty to theft of Federal Government property
Scottie J. Ware pled guilty to theft of Federal Government property, in June 2006, in the Western District of Tennessee. According to the indictment, Ware stole a laptop computer that belonged to the United States. The laptop computer came into Ware?s possession by virtue of his employment with the IRS. The Treasury Inspector General for Tax Administration investigation determined that the theft did not result in any improper disclosure of sensitive information because the stolen computer did not contain taxpayer data.
Individual Arrested for Impersonating an Internal Revenue Service (IRS) Employee
Camelia Peatross was arrested in Michigan in June 2006. The arrest is the result of a warrant issued pursuant to a criminal complaint filed, by TIGTA, in the United States District Court for the Eastern District of Michigan. According to the affidavit supporting the complaint, Peatross was identified as a co-conspirator in attempts to impede an investigation of another individual by acting in the capacity of a "private investigator" and by impersonating an IRS Employee.
Individual indicted for impersonating an Internal Revenue Service (IRS) employee
Jerome Allen Moore was indicted in June 2006 for pretending to be an IRS employee and making false statements on Power of Attorney and Declaration of Representative (Form 2848). The indictment was issued in the United States District Court for the District of Colorado. According to the indictment, Moore falsely pretended to be an IRS employee and in such pretended character obtained money from three individuals. The indictment also alleges that Moore knowingly made and used eight IRS Forms 2848 that falsely stated he was an enrolled agent and/or enrolled actuary.
Individual Arraigned for Impersonating an Internal Revenue Service (IRS) Officer
Elizabeth Terry appeared and was arraigned in the United States District Court for the District of New Jersey in May 2006 as a result of a criminal complaint charging her with Impersonation of an IRS Employee for financial gain. The complaint alleges that Terry falsely pretended to be an officer and employee acting under the authority of the IRS, and in such pretended character demanded and obtained money and things of value.
Individual Arrested for Theft of Government Property and Embezzlement by a Bank Employee
Ursula Nicole Moore was arrested in June 2006 for Theft of Government Property and Embezzlement by a Bank Employee. The arrest was the result of an indictment issued in the Northern District of Texas. According to the indictment, Moore, a bank employee, embezzled property of the United States, namely checks and a money order payable to the IRS totaling approximately $29,770.
Internal Revenue Service (IRS) Employee Pleads Guilty to Unauthorized Inspection of Tax Returns and Tax Return Information
Edward James Goolsby pled guilty in June 2006, in the Northern District of Texas, to Unauthorized Inspection of Tax Returns and Tax Return Information. According to court documents, Goolsby, while working as an IRS employee, used his IRS computer to unlawfully access financial information from the IRS tax account of a taxpayer.
Former Internal Revenue Service (IRS) Employee Pleads Guilty to Unauthorized Access to a Government Computer
Maria E. Perez was sentenced, in May 2006, to 2 years probation, 50 hours of community service, and a $500 fine for Unauthorized Access to a Government Computer. The sentence is the result of a guilty plea entered in the Eastern District of California. According to the plea agreement, while employed by the IRS, Perez intentionally exceeded authorized access to the IRS Data Retrieval System, and obtained tax return information of her children's fathers.
Individual Indicted for Corrupt or Forcible Interference with the Internal Revenue Service (IRS) and Passing Fictitious Obligations
Rex Black was indicted by a federal grand jury in March 2006, in the Northern District of Illinois, and charged with one count of Corrupt or Forcible Interference with the IRS and four counts of Passing Fictitious Obligations. According to the indictment, Black corruptly obstructed and impeded the due administration of Title 26, United States Code, by impeding and impairing the IRS in carrying out its lawful function to collect income taxes, penalties, interest, and fines for the United States. It was allegedly part of the corrupt endeavor that Black failed to pay his outstanding income taxes, penalties, and interest that he had due and owing to the IRS for the 1997 and 1998 tax years. The indictment alleges that Black passed and attempted to pass fictitious financial instruments purporting to be legitimate financial instruments, and checks drawn on closed bank accounts, in payment of outstanding income taxes, penalties, and interest he had due and owing to the IRS. The indictment further alleges that defendant REX BLACK misrepresented, hid and concealed the true nature and purposes of the corrupt endeavor, and acts done in furtherance of the corrupt endeavor.
Former Internal Revenue Service (IRS) Employee Sentenced for Exceeding Her Authorized Access to a Computer and Obtaining Information from the IRS
Janine Turner was sentenced in May 2006, in the District of New Jersey, to one year and a day incarceration, followed by two years supervised release, and a $3,000 fine. The sentence is the result of a guilty plea to an Information charging her with exceeding her authorized access to a computer and obtaining information from the IRS. According to court documents, while employed by the IRS, Turner accessed the IRS computers and, in disregard of and without conformity to the law applicable to and restricting access to taxpayer information, obtained taxpayer information on approximately 150 separate occasions.
Government Contractor Sentenced for Submitting False Claims to the U.S. Government
Fulton and Associates, Inc. (FAI) was ordered in May 2006 to pay a fine of $8,000, and restitution to the Internal Revenue Service in the amount of $6,854.22. The sentence is the result of a plea agreement entered in the U.S. District Court, Eastern District of Virginia, in which FAI pled guilty to submitting false claims to the Government. The false claims were submitted in connection with a contract for FAI to provide telecommunication software to the IRS.
According to court documents, FAI submitted two invoices to the IRS which charged for certain labor hours under the contract, when there was no reasonable basis to believe that the specific labor had been performed on the contract, causing a loss to the government of approximately $6,854.22
Former Internal Revenue Service (IRS) Employee Indicted for Unauthorized Disclosure of Return Information
Kai Serena Renfro was indicted in May 2006 on one count of unauthorized disclosure of return information, and one count of possession of a counterfeit security. The indictment was issued in the Western District of Tennessee. According to the indictment, Renfro, while employed by the United States, did knowingly, willfully and unlawfully disclose to another person, return information without authorization. The indictment also alleges that Renfro knowingly, willfully, and unlawfully made and possessed a counterfeit security with the intent to deceive another person, organization or government, having an affect on interstate commerce.
Former Internal Revenue Service (IRS) Employee Sentenced for Bank Fraud and Making False a Statement
Renea Holmes was sentenced in April 2006 to time served and three years of supervised release. Holmes was also ordered to pay restitution of $13,631.25. The sentence is the result of a guilty plea, entered in the Western District of Tennessee, for bank fraud and making a false statement concerning a matter within the jurisdiction of the Internal Revenue Service (IRS).
According to court documents, in addition to Bank Fraud, unrelated to the IRS, Holmes knowingly and willfully made a material false, fictitious and fraudulent statement and representation concerning a matter within the jurisdiction of the IRS. Specifically, Holmes provided false information in answering a question on Optional Form 306, “Declaration for Federal Employment,” by answering “no” in response to the question, “During the last 5 years, were you fired from any job for any reason, did you quit after being told that you would be fired, did you leave any job by mutual agreement because of specific problems, or were you debarred from Federal employment by the Office of Personnel Management?” In fact, Holmes then knew she had been terminated from employment at a previous employer on or about November 15, 2001.
Former Internal Revenue Service (IRS) Employee sentenced for Unauthorized Access of Information from a Government Computer
Former IRS employee Pamela Slaughter was sentenced in March 2006 for Unauthorized Access of Information from a Government Computer System for Private Financial Gain. Slaughter was sentenced to 30 months probation, ordered to pay $2,173 restitution, and fined $750. The sentence was the result of a guilty plea entered in the Eastern District of Pennsylvania. According to court documents, Slaughter knowingly and intentionally accessed, in a manner that exceeded her authority, the IRS computer system and obtained information from the IRS for purposes of private financial gain.
Government Contractors Settle Complaint of Making False Claims to the Government
In December 2005, consulting firms KPMG LLC, Bearingpoint, Inc., and Ernst and Young, LLP, agreed to settle, without any admission of guilt, lawsuits concerning false claims allegedly submitted to the government for contract work with various government agencies, including the IRS. Together, the firms agreed to pay the government more than $22 million. According to the settlement agreement, the consulting firms were alleged to have presented, directly and indirectly, claims for payment pursuant to government contracts in which it sought reimbursement for travel expenses and charge card purchases that were in excess of the expenses actually incurred. The sums billed to the Government with respect to the foregoing costs were allegedly inflated because they did not reflect commissions, rebates and incentives received by Defendant from travel providers, travel service providers and charge card companies.
Former Internal Revenue Service (IRS) Employee Pleads Guilty to Unauthorized Access of a Government Computer
Hazel Leora Jones pled guilty to Unauthorized Access of a Government Computer. The plea was entered in the Western District of Missouri in April 2006. According to the plea agreement, while an employee of the IRS, Jones accessed an IRS computer database containing taxpayer information. By accessing the database, Jones was able to input a search for taxpayers by name. Jones used this computer search function to search for taxpayers with the same first and last name as one of her relatives. The search resulted in a list of dozens of taxpayers with the name, and the list also displayed the corresponding social security number for each name. Jones provided the list to her relative knowing that he intended to use the information to commit financial frauds through identity theft, for private financial gain.
Former Internal Revenue Service (IRS) employee pleads guilty to unauthorized inspection of returns
Mary M. Mattinson plead guilty, in April 2006, to one count of Unauthorized Inspection of Returns or Return Information. The plea was entered in the Eastern District of California. According to the plea agreement, Mattinson, as an employee of the IRS, intentionally inspected the tax return information of six private individuals with whom she has a personal relationship. In doing so, Mattinson exceeded her authorization in making the access.
Internal Revenue Service (IRS) Employee Arrested for Fraud and Related Activity in Connection with Computers
Edward James Goolsby, an IRS employee, was arrested in April 2006 for Fraud and Related Activity in Connection with Computers. The arrest was the result of an indictment issued in the Northern District of Texas. According to the indictment, Goolsby, while working for the IRS, did knowingly and unlawfully access a computer without authorization and thereby obtained information from the IRS. The indictment further alleges that Goolsby engaged in such conduct for the purposes of private financial gain.
Former Internal Revenue Service (IRS) Employee Charged with Fraud and Related Activity in Connection with Computers, and Social Security Fraud
Christina Lane Unser was indicted on two counts each of fraud and related activity in connection with computers, and social security fraud. The indictment was issued in the Western District of Texas in April 2006.
According to the indictment, Unser did, as an employee of United States, intentionally access a computer exceeding her authorized access, and thereby obtained information from a department or agency of the United States, to wit, the Internal Revenue Service. The Indictment further alleges that Unser did knowingly and with intent to defraud, access a protected computer exceeding her authorized access, and by means of such conduct furthered an intended fraud and obtained something of value, to wit, over $11,900 in fraudulent Federal income tax refunds.
In addition, the indictment charged that Unser did knowingly possess and use, without lawful authority, a means of identification of another person, to wit, a name and social security account number of another person to fraudulently obtain approximately $43,174 in US Social Security benefits.
Individual Pleads Guilty to Bribery of a Public Official
Thanh Nguyen pled guilty to an Information charging him with one felony count of Bribery. The plea was entered in the Northern District of New York in April 2006.
According to the information, Nguyen did knowingly and willfully and in a manner other than as provided by law for the proper discharge of official duty, give a thing of value, specifically $2,000 in United States currency, to a public official, specifically a representative of the Internal Revenue Service, for or because of an official act, specifically the delivery of a "no change" letter concerning his 2002 individual income tax return.
Two Individuals Arrested for Bribery of an Internal Revenue Service Employee
Mr. Edwin Kwabena and Mrs. Esther Kwabena were arrested in the Southern District of New York, in March 2006. The Kwabenas were charged with Bribery.
According to the indictment, the Kwabenas allegedly gave cash payments to an Internal Revenue Service agent in order to induce the IRS Agent to reduce their taxpayer liability.
Individual Pleads Guilty to Theft of Public Money
Daniel Kornson entered a guilty plea to Theft of Public Money, in the Western District of Michigan, in April 2006. According to the plea agreement, Kornson, while Finance Director for a health care provider to low income patients, misappropriated approximately $500,000 of employee tax withholdings.
Individual charged with bribery of an Internal Revenue Service (IRS) employee
Diana Hong was indicted for bribery, by a Federal grand jury in the Northern District of New York, in March 2006. According to the indictment, Hong knowingly, willfully, and corruptly gave a thing of value, specifically $500 and later an additional $1,000 in United States currency, to a public official, specifically a representative of the IRS, with the intent to influence an official act.
Individual arrested for attempts to interfere with the administration of Internal Revenue laws, corrupt or forcible interference
Special Agents of the Treasury Inspector General for Tax Administration (TIGTA) arrested David J. D'Addabbo in March 2006, in Utah. D'Addabbo was indicted by a federal grand jury and charged with one count of attempts to interfere with administration of Internal Revenue laws, corrupt or forcible interference.
According to the indictment, David D'Addabbo filed a petition with the United States Tax Court which warned an employee of the Internal Revenue Service (IRS) that if he (the IRS employee) persisted in his efforts to collect income taxes from Linda Lou D'Addabbo that he would be "tried by a jury and your penalty will be sought for it to be death by a firing squad." David D'Addabbo allegedly also filed a second petition with the United States Tax Court that purported to order the IRS to return all monies collected from Linda Lou D'Addabbo and to stop all liens and levies. This order allegedly warned that if it was not complied with, anyone attempting to collect taxes would be tried by "a jury of common people. You then could be found guilty of treason and taken immediately to a firing squad."
C.P.A. Charged in a Scam
A Burlington C.P.A. has been charged with participating in a con game in which the victim - who was himself under criminal investigation - paid $20,000 in the belief that a high government official would "fix" the case against him.
View the press release for more information.
IRS Employee Arrested on Federal Charges
IRS employee used another persons credit history to open credit lines at retail stores to purchase high priced mens suits, furniture, handbags, and auto accessories.
View the press release for more information.
IRS employee arrested for making false entries in the IRS Criminal Investigation Division Fraud Detection Center's computer databases
Diana Nicholson, employed by the IRS as an investigative aide, was arrested in March 2006 for Making False Entries in a Matter within a Government Agency, Making False Entries in Records of Federal Investigations, and Aiding and Abetting. The arrest is the result of Nicholson being indicted for the alleged crimes in the Eastern District of California. The indictment alleges that Nicholson willfully falsified, concealed, and covered up by trick, scheme, and device, certain material facts and aided and abetted the same, in order to hide the fact that she failed to perform her duties and eliminate work assigned to her. According to the indictment, Nicholson knowingly and willfully falsified and made false entries in records, documents, and tangible objects, with the intent to impede, obstruct, and influence the investigation and proper administration of a matter within the jurisdiction of a department and agency of the United States.
Former IRS employee indicted for theft of Federal Government computers
Scottie J. Ware, a former IRS employee, was indicted in March 2006, in the Western District of Tennessee, for five counts of Theft of Government Property. According to the indictment, Ware allegedly willfully and knowingly did steal, embezzle, and convert to his own use five laptop computers belonging to the IRS. The indictment alleges that the laptop computers had come into Ware's possession by virtue of his employment as an information technology specialist with the IRS.
Former Internal Revenue Service (IRS) employee sentenced for computer fraud and unauthorized inspection of tax returns and tax information
Cecelia A. Jackson (a.k.a. Cecelia A. Husain) was sentenced to one year probation, in the Western District of North Carolina, for intentionally exceeding her authorized computer access and obtaining information from the IRS, and willfully and without authorization inspecting tax returns and tax information. The indictment was issued in September 2005 along with a summons to appear before the United States District Court.
IRS employee indicted for making false entries in a matter within the jurisdiction of the United States Government
Diana Nicholson, an IRS investigative aide, was indicted in March 2006 for allegedly making false entries in a matter within the jurisdiction of the United States Government and making false entries in records of Federal investigations and proceedings. The indictment was issued in the Eastern District of California. According to the indictment, Nicholson willfully falsified various entries maintained in the computer databases of the IRS Criminal Investigation Division Fraud Detection Center from on or about January 1, 2005, to on or about August 1, 2005. The indictment also alleges that Nicholson made those false entries during the course of her official employment as an investigative aide at the Fraud Detection Center in Fresno, California, in order to hide the fact that she failed to perform her duties and eliminate work assigned to her.
Nibley Resident Arrested After Grand Jury Indictment Charges Him with Impeding IRS
SALT LAKE CITY -- Stephen J. Sorenson, Acting United States Attorney for the District of Utah, and Terry K. Peacock, Special Agent in Charge of the Treasury Inspector General for Tax Administration (TIGTA), Denver Field Office, announced Monday that David J. D'Addabbo, age 51, of Nibley, Utah, was arrested Sunday by TIGTA special agents assisted by special agents and officers of the FBI and the Cache County Sheriff's Department.
View the press release for more information.
Internal Revenue Service (IRS) Employee charged with Unauthorized Inspection of a Tax Return and Fraud and Related Activity in Connection with Computers
Jeffrey D. Vogland, an IRS Employee, was charged with Unauthorized Inspection of a Tax Return and Fraud in Connection with Computers. The Information was filed in the Eastern District of California in February 2006. According to the Information, Vogland unlawfully and without authorization accessed and inspected the tax return of a private individual.
Individual Sentenced for a Fraudulent Scheme Involving an Internal Revenue Service (IRS) Lockbox
Burg Mwansa was sentenced in February 2006 to fifteen months incarceration, subsequent deportation or 3 years probation, and payment of $7,473.37 in restitution. The sentencing was pursuant to a conviction in the Northern District of Texas for Conspiracy to Commit Bank Fraud. According to court documents, Mwansa and his co-conspirators conspired and agreed to devise and intend to devise a scheme and artifice to defraud a federally insured bank by opening a bank account under a fictitious name, depositing stolen and counterfeit checks into said bank account and withdrawing the funds from the account.
Individual Sentenced for a Making False Statement to an Agency of the United States
Robert Baynes was sentenced to two years probation and fined $1,500, for Making a False Statement to an Agency of the United States. The sentencing took place in January 2006 in the Southern District of Indiana. According to the information filed with the court, Baynes prepared, signed, and submitted to the IRS an IRS Form 2848 representing that he was a Certified Public Accountant (CPA) duly qualified to practice in Indiana, thereby entitling Baynes to represent taxpayers before the IRS when, in fact, Baynes knew that he was not a licensed CPA when he made the statement to the IRS.
IRS Criminal Investigative Aide Indicted for Making Fraudulent Entries Into Fraud Detection Center's Computer Databases
FRESNO-- United States Attorney McGregor W. Scott and Alan N. Hatcher, Special Agent-in-Charge, Treasury Inspector General for Tax Administration, San Francisco Field Division, announced today that a federal grand jury sitting in Fresno returned a two-count indictment against DIANA NICHOLSON, an IRS Investigative Aide, charging her with making false entries in a matter within the jurisdiction of the United States government and making false entries in records of federal investigations and proceedings. The United States District Court in Fresno issued a warrant for NICHOLSON's arrest today.
View the press release for more information.
Internal Revenue Service (IRS) employee sentenced for destroying taxpayer records
James Lewis, an IRS employee at the time in question, was sentenced in February 2006 for both the removal and destruction of Federal Government records and the attempted removal and destruction of Federal Government records. Lewis was sentenced to 24 months probation and payment of $500 restitution to the IRS. The sentence is the result of a guilty plea entered in the District of Massachusetts in November 2005. According to the Indictment, Lewis removed and destroyed numerous taxpayer records in his custody. Lewis also attempted to remove and destroy taxpayer records, including corrected Wage and Tax Statements (Form W-2), and letters from taxpayers and their representatives seeking assistance.
Individual sentenced for assaulting Internal Revenue Service (IRS) employee
Richard James Humpal was sentenced to 12 months and one day in jail and three years probation and was fined $4,000, for assaulting a Federal Government officer resulting in the infliction of bodily injury. The sentencing took place in February 2006, as the result of a jury finding Humpal guilty in the Central District of California. According to the indictment, Humpal used force to assault and interfere with an IRS employee while engaged in the performance of official duties, resulting in the infliction of bodily injury.
Former IRS employee sentenced for unauthorized inspection of return information
Kimberly M. Gardner was sentenced, in the Eastern District of California, to 12 months probation and was fined $1,000 in February 2006. The sentence is the result of a guilty plea in which Gardner admitted that, while an employee of the IRS, she willfully made nine inspections of tax returns of three private individuals without authorization from the individuals or the IRS.
Former Internal Revenue Service (IRS) Employee Pleads Guilty to Bank Fraud and Making False Statements
Former IRS employee Renea Holmes pled guilty to bank fraud and making false statements on her application for federal employment. The plea was entered in the Western District of Tennessee in January 2006. The indictment states that Holmes knowingly and willfully made a material false, fictitious and fraudulent statement and representation concerning a matter within the jurisdiction of the executive branch of the Government of the United States. Specifically, Holmes provided false information in answering a question on Optional Form 306, Declaration for Federal Employment.
Individual Sentenced for False Personation
Bobby Ray Cody was sentenced, in January 2006, in the Middle District of Alabama, to 5 years probation and payment of $10,000 in restitution. The sentence is the result of a guilty plea to one count of false impersonation of an officer or employee of the United States. According to the plea agreement, Cody falsely assumed and pretended to be an agent of the Internal Revenue Service, and in such assumed character, with intent to defraud, did falsely demand and obtain a thing of value, approximately $10,000, on behalf of the United States.
Former Internal Revenue Service (IRS) Employee Pleads Guilty to Exceeding Her Authorized Access to a Computer and Obtaining Information of the IRS
Janine Turner pled guilty, in January 2006, to a one-count Information charging her with exceeding her authorized access to a computer and obtaining information of the IRS. According to court documents, Turner, while employed by the IRS, accessed the IRS computers and, in disregard of and without conformity to the law applicable to and restricting access to taxpayer information, obtained taxpayer information on approximately 150 separate occasions.
Former Internal Revenue Service (IRS) Employee Sentenced for Unauthorized Access to a Computer
Marlene Escobar was sentenced, in January 2006 in the Eastern District of California, to one year probation, 75 hours of community service, and a $1,000 fine, for unauthorized access to a computer. According to the plea agreement, Escobar, while employed by the IRS, intentionally accessed private taxpayer information that exceeded her authorized access.
Former Internal Revenue Service (IRS) Employee Sentenced for Theft of Government Property
A former IRS employee, Janet L. Vargas, was sentenced to one year probation, for Theft of Government Property under $1,000 in value. The sentence was imposed in January 2006 in the Western District of Missouri as the result of a guilty plea.
According to the plea agreement, while employed at the IRS, Vargas was aware that a co-worker was stealing tax remittance payments to the IRS. This co-worker gave Vargas two money orders that Vargas knew had been stolen from the IRS. The payee names were changed on the stolen money orders and the money orders were provided to an associate of Vargas, to whom Vargas owed money. Vargas later repaid the IRS the amount of the two money orders and the amount of a check which the co-worker had provided to Vargas in March 2003.
Former Internal Revenue Service (IRS) Employee Sentenced for Theft of Government Property; Aiding and Abetting
Kenneth Gerard was sentenced in December 2005, in the Eastern District of California, for Theft and Conversion of Property of the United States and Aiding and Abetting. Gerard received 24 months probation and was ordered to pay a $1,000 fine and restitution of $7,714. According to court documents, Gerard, who was an IRS employee, was captured on videotape stealing three laptop computers from an IRS warehouse. Gerard later admitted that he stole numerous items from the warehouse, including several computers, with the assistance of a security guard and another IRS employee.
Fugitive Arrested for Conspiracy and Bank Fraud
Heidi Salgado was arrested in Laredo, Texas, in December 2005. As a result of a TIGTA investigation, Salgado was indicted in June 2005 by a federal grand jury in the District of Maryland on one count each of Conspiracy; Bank Fraud; and Aiding and Abetting. Subsequently, a warrant was issued for her arrest.
According to the Indictment, Salgado and her co-conspirators devised a scheme to defraud banks and to obtain moneys, funds, and credits under the custody and control of the banks by means of materially false and fraudulent pretenses, representations and promises. Salgado allegedly obtained custody and control over various United States Treasury checks written for payment of federal tax returns to other persons, without the knowledge or consent of the true payees. Salgado and the co-conspirators then allegedly presented the aforementioned United States Treasury checks to the banks and elsewhere, represented themselves to be the true payees on the checks, without the knowledge of the true payees on the checks, and cashed and caused to be cashed the checks at the banks. Salgado is also alleged to have knowingly and willfully executed and attempted to execute the scheme and artifice to defraud as set forth above in that she caused to be cashed a check written for payment to a person other than herself.
Individual Pleads Guilty to Misprision of a Felony
Karen Annette James entered a guilty plea in December 2005 to Misprision of a Felony in the Northern District of Texas. According to the court documents, James had knowledge of the actual commission of a felony, to wit, conspiracy to commit fraud against a bank, failed to notify proper authorities of the crime, and did an affirmative act to conceal the crime. James learned that she had allowed the deposit of a stolen check, for $10,500, into her checking account. James then later withdrew $5,000 of the fraudulently obtained funds from her bank account, transferred the money to those who had illegally obtained it,.and accepted $1,200 in cash for her assistance.
Individual Sentenced for Conspiring to Steal U.S. Government Money
Mark Merrell was sentenced to five months of incarceration; probation for two years with five months of home confinement; and paying restitution to the Internal Revenue Service (IRS) of $16,421.89; in the Western District of Tennessee, in December 2005. This sentence is the result of a guilty plea to conspiracy to steal U.S. government money. According to court documents, Merrell and a co-conspirator, who worked for the IRS, stole over $14,000 of IRS money for personal gain and benefit. Merrell and the co-conspirator opened a joint checking account in which they deposited $11,575 and withdrew $6,200 from the account.
Former Internal Revenue Service (IRS) Employee sentenced for Theft of Public Money
A former IRS Employee, Geraldine Klein, was sentenced in December 2005 to 1 year probation, $2,013.97 restitution, and a $1,000 fine, for Theft of Public Money in the Central District of California. According to the plea agreement, Klein altered her time sheets to indicate she was present at work for an entire pay period, when, in fact, she had used approximately 34 hours of leave time. Klein made these false statements to the IRS so that she could improperly obtain approximately $600 in pay from the United States to which she was not entitled. Klein misappropriated these funds for her own use and thus intended to deprive the United States of use and benefit of the money.
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