Tax Rebates & Refunds

US woman jailed for $2.1 million tax rebate fraud

August 17, 2012
Posted in Fraud, Tax Rebates — Written by Jennifer

A young woman from the US state of Oregon has been sent to prison to serve a five and a half year sentence after she was found guilty of committing tax refund fraud worth $2.1 million.

Krystle Marie Reyes, 25 from Salem, pleaded guilty to the charges made against her, which included duping the state of Oregon out of $2.1 million in false tax refund claims. There was apparently ‘overwhelming’ evidence against Ms Reyes, who was found guilty of one count of tax evasion and one of fraud.

Ms Reyes reportedly filed an electronic tax return using tax software, and erroneously reported earnings of over $3 million for the tax year. She then applied for a $2.1 million tax refund, which was initially red-flagged by an automated system but this was overturned by an Oregon Department of Revenue employee. It should have been reviewed by a potential fraud committee of staff and managers, but instead, the refund was issued to Ms Reyes.

A court in Oregon heard how Ms Reyes went on a spending spree with her refund money. For committing tax fraud and computer crime, she was sentenced to a total of 5 and a half years in prison.

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