Highlights from Recent Tax Fraud Cases

Posted on May 07, 2022

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Using His IRS Position to Steal Money

Ryan Payne from Fayetteville, Arkansas, a former IRS agent, has been sent to prison for more than four years. He was convicted for ID theft and false representation of a Social Security number.

It seems that when Payne was doing an audit of a company, he received a flash drive with the business records of the company and the personal ID information from the owner. Payne chose to keep the said drive when he left the IRS and set up an account using the ID.

Boss Keeps Money to Herself instead of Paying Taxes

Stephanie Johnson from New Richmond, Wisconsin, recently pleaded guilty for defrauding her corporation and business partner, and for failing to submit payroll taxes for her employees.

She co-owned her corporation, and she was omitting to pay payroll taxes to the IRS for the fourth quarter of 2013. Stephanie kept the money for herself instead.

Earning Money from Other Peoples’ Tax Refunds

Dawn Chapelle Cottman, from Owings Mills, Maryland, has been convicted of a total of 14 counts of wire fraud, filing false returns, and identity theft.

Cottman owned a tax prep business and operated it from her home. During four years, she filed hundreds of returns, but she also deposited the refunds directly to her account. She used the identities of other people to do this. In the end, around $1 million of other people’s tax refunds ended up in her account.

Getting Away with Fraud for Several Years

Nicole Marie Graziano, a former accounting manager from Las Vegas, has been sentenced to over two years in prison for tax evasion and stealing over $700,000 from two of her employers.

She pleaded guilty, and it seems that for six years she was using several different schemes to conceal her criminal acts. Nicole manipulated the payroll tax records of her employers, and she used the money to buy several luxury items and to pay her rent.

Brothers Restaurateurs Avoid Paying Taxes

Two restaurateurs Elio and Ralph Federico, from Saddle Brook, New Jersey, pleaded guilty to tax evasion and were sentenced to five years each.

The brothers owned a restaurant since 1967, and it seems that they have been running it using cash only. They were concealing parts of their income from the IRS by using several means like skimming money from receipts, reprogramming their cash register, and not providing their accountant with all the necessary invoices.

In total, they failed to pay taxes in the amount of a quarter of a million dollars over a four year period.

Business Owner Steals from His Company and Investors

In Washington, D.C. a business owner by the name of Michael Sang Han has been found guilty for tax evasion because he failed to pay over $4 million in taxes for only two years.

Han had managed to get two people to invest $40 million in his business, and he kept $14 million for himself. He used the money to sponsor a lavish lifestyle by buying a beach house which he completely renovated, buying luxury cars, flying on private jets, and more.

If that weren’t enough, he used millions from the investors’ money to replace the cash he previously stole from his company.

Hopefully, these cases have been interesting, but also point towards the necessity of paying taxes on time and in the amount you owe. If you need help with this, contact Golden Tax Relief and schedule a free consultation.

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