Miami Duo Admits to $1.2M Tax Refund Scam

MIAMI, FL – A brazen scheme to defraud the U.S. government out of over $1.2 million in fraudulent tax refunds has landed two Miami residents in federal court. Michael Virgile, 28, and Shana Sainvil, 26, both of Miami, each admitted guilt to one count of wire fraud (Title 18, United States Code, Section 1343) earlier this week, facing up to twenty years behind bars.

The operation, hatched in 2009, saw Virgile establish Tax Masters & Multi-Services LLC (Tax Masters), with himself as the managing member and Sainvil securing two electronic filing identification numbers (EFINs) from the IRS. From early 2010 through late 2011, the pair systematically filed bogus income tax returns, primarily utilizing Sainvil’s EFINs. The returns were riddled with fabricated income figures and ineligible tax credits, all designed to inflate refund amounts.

Court documents reveal a particularly callous aspect of the scam: many of the fraudulent returns were filed in the names of unsuspecting high school and college students, individuals who were not entitled to any refund whatsoever. Virgile orchestrated the filings, while Sainvil facilitated the electronic submission, creating a pipeline for stolen funds.

The fallout? Approximately $1.2 million in fraudulent refunds were funneled into bank accounts controlled by Virgile, with Sainvil’s accounts receiving between $200,000 and $400,000. The pair then brazenly used these ill-gotten gains for personal expenses, living high on the backs of taxpayers. Sentencing is scheduled for December 11, 2014, at 9:30 a.m., leaving the pair facing a grim holiday outlook.

“This wasn’t some accidental oversight; it was a deliberate, calculated attempt to steal from the American people,” stated a source close to the investigation. The collaborative effort that brought Virgile and Sainvil to justice involved the Internal Revenue Service, Criminal Investigation (IRS-CI), the Federal Bureau of Investigation (FBI) – Miami Field Office, and the North Miami Beach Police Department. U.S. Attorney Wifredo A. Ferrer praised the agencies’ work.

Assistant U.S. Attorney Michael N. Berger is prosecuting the case. Further details, including court documents, can be found on the U.S. Attorney’s Office for the Southern District of Florida website: http://www.usdoj.gov/usao/fls and the District Court’s website: http://www.flsd.uscourts.gov or http://pacer.flsd.uscourts.gov. This case serves as a stark reminder that financial crimes, no matter how complex, will be pursued with relentless vigor.

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