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Binghamton Man Nabbed for $6.1M IRS Scam
BINGHAMTON, NEW YORK – A brazen attempt to defraud the U.S. Treasury has landed Kareem Young, 40, of Binghamton, in serious legal trouble. A jury delivered a guilty verdict today, finding Young guilty of filing a false claim with the Internal Revenue Service after a four-day trial. The scheme involved a wildly inflated income claim and a demand for a refund that never should have been.
According to trial evidence presented by the U.S. Attorney’s Office, Young submitted a 2013 U.S. Individual Tax Return claiming an income of $6,125,000 and corresponding federal tax withholdings of the same amount. He then had the audacity to request a refund of $6,125,000. The reality? Young’s actual income for 2013 totaled a meager $3,127.36. The disparity speaks volumes about the calculated nature of the fraud.
To bolster his bogus claim, Young fabricated withholdings on a Form 1099 OID, falsely claiming credits from the Broome County District Attorney’s Office. This wasn’t a simple error; it was a deliberate attempt to manipulate the system. The IRS quickly flagged the return, sending Young correspondence demanding a corrected filing. He ignored the warning, doubling down on his effort to secure the phantom refund. The IRS, unsurprisingly, never issued a dime.
Federal investigators revealed the scheme originated while Young was incarcerated in state prison. He apparently learned the tactic – falsely claiming credits from the office of the District Attorney prosecuting him – during his time behind bars. A cynical and audacious move, exploiting the very system meant to uphold the law. The case was a joint effort by the IRS-CI and the Inspector General’s Office of the New York State Department of Corrections and Community Supervision.
U.S. Attorney Grant C. Jaquith and Jonathan D. Larsen, Special Agent in Charge of the IRS-CI, New York Field Division, announced the conviction. Young is scheduled for sentencing on September 24, 2019, before Senior United States Judge Thomas J. McAvoy. He now faces up to 5 years in federal prison. The sentence will be determined by a number of factors, including federal sentencing guidelines and the specifics of the violated statute.
Assistant United States Attorney Tamara Thomson skillfully prosecuted the case, bringing the details of Young’s fraud to light. This conviction serves as a stark warning: attempts to game the IRS will be met with federal prosecution and, if successful, serious prison time. The Grimy Times will continue to follow this case as sentencing approaches.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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