CONTACT: Gina Balaya (313) 226-9758

Stephen Moore, IRS CI (313) 628-3307
 

FOR IMMEDIATE RELEASE:
 

    United States Attorney Jeffrey Collins, and Mark Kroczynski, Special Agent in Charge of Internal Revenue Service Criminal Investigation, announced that on April 29, 2002, Mark Van Sile, 42, Grosse Pointe Farms, Michigan, pleaded guilty to filing a false claim with the Internal Revenue Service by filing a 1996 tax return in a fictitious taxpayer's name, Eddie Abbott, claiming a tax refund.

    Mr. Collins stated, "In 1996 and 1997, Mr. Van Sile created a false birth certificate in the name of "James Spencer" and used it to obtain a social security number and Michigan Driver's License. He then used his alias, "James Spencer", and opened approximately 40 post office boxes and private mail boxes under the guise of conducting business under the names "Precision Plastics" and "Active Accounting Services." The post office was provided the names of person who would be receiving mail, which later corresponded with the fictitious taxpayer's fraudulent tax returns. Using a computerized tax preparation program, Mr. Van Sile generated fraudulent Forms W-2, Wage and Tax Statements, indicating that the fictitious taxpayers were employed at companies such as General Motors Corporation, Modern

    Engineering Inc., and United Parcel Service. Mr. Van Sile prepared and filed approximately 55 fraudulent tax returns claiming tax refunds. In addition, Mr. Van Sile opened a checking account in "James Spencer's" name, where he planned to deposit the IRS refund checks."

    Mr. Collins stated, "As the result of quick action by the IRS Questionable Refund Detection Team, along with the help United States Postal Inspectors, IRS Criminal Investigation was able to obtain and execute a search warrant and seize another 250 fraudulent tax returns before they were filed with the Internal Revenue Service. The aggregate total refunds of all the fictitious returns filed or seized would have exceeded $2 million."

    Mr. Collins stated, "Mr. Van Sile went to elaborate lengths to cheat the American public, and because of the vigilance of the IRS detection teams and IRS Criminal Investigation, along with the United Postal Inspectors, he was not able to reap any financial benefit from his fraudulent scheme. The Internal Revenue Service was able to stop all checks issued in this scheme."

    Mr. Collins stated, "Filing false claims against the United States is in violation of Title 18, United States Code, Section 287. Each count of conviction carries a maximum penalty of five years imprisonment and a $250,000 fine. Sentencing is scheduled for July 29, 2002 at 9:30 a.m. in front of U.S. District Court Judge Marianne O. Battani. Any sentence will be imposed under the United States Sentencing Guidelines according to the nature of the offense and the criminal background, if any, of the defendant."

    Mr. Collins commended the agents of the Internal Revenue Service Criminal Investigation for their work in this investigation. Assistant United States Attorney Jonathan Tukel prosecuted the case.