Ex-IRS Worker ‘Cookie’ Gillette Jailed in Philly Tax Scam

PHILADELPHIA — Modestine Gillette, a/k/a “Cookie,” 48, of Philadelphia, was sentenced today to twelve months and one day in federal prison for running a multi-year tax fraud scheme against her former employer, the Internal Revenue Service. Gillette, once trusted to guide taxpayers through IRS procedures, instead exploited her position to file phony returns, steal refunds, and vanish victims’ money into a bank account she controlled.

Gillette pleaded guilty on November 6, 2015, to charges tied to three separate fraud loops carried out between October 2008 and March 2012, while working as a part-time Contact Representative for the IRS. In that role, she was barred from preparing tax returns for pay — a rule she shattered repeatedly. Instead of serving the public, she weaponized her access, filing false returns in the names of vulnerable individuals, many of whom were unaware they’d even been filed.

One of the most brazen scams involved JB, a woman cycling through jail, rehab, and homeless shelters with zero income in 2009. Gillette filed a return in her name, claiming $9,975 in hair stylist earnings and a $3,043 Earned Income Tax Credit. The fake return sought a $2,975 refund — one the IRS never released, but which Gillette never intended for JB to see. JB had no knowledge of the filing and never authorized it.

Other victims were similarly blindsided. Gillette filed returns for SH in 2009 and 2010, pocketing $3,836 from the first and the entire second refund — keeping $1,933 — while SH believed she’d only paid a $400 prep fee. For RH, she filed a 2009 return, claimed a $5,216 refund, sent $4,216 to RH’s account, and kept $1,000. RH had no idea Gillette stole part of her money.

VW and KD were also targeted. Gillette filed a 2009 return for VW, claimed $6,616, and diverted $1,400 into her own account — without authorization. For KD, she filed returns in 2010 and 2011, falsely inflating refunds and keeping $3,100 and $1,000 respectively, despite KD believing Gillette would only collect a $50 fee per return.

The fraud totaled over $12,869 siphoned from the IRS and victims’ rightful refunds. On top of her prison term, Gillette’s betrayal of public trust as an IRS employee adds a layer of institutional corrosion to her crimes. Authorities emphasized that no position, no matter how modest, is immune to abuse when greed takes hold — and that those who exploit the system will face consequences.