St. Charles Parish tax preparer Cathy Ross Vinnett, 46, of Destrehan, Louisiana, has pleaded guilty to conspiracy to defraud the United States and the Internal Revenue Service. Her daughter, Lashanda Ruth Vinnett, 29, also of Destrehan, Louisiana, pleaded guilty to the same charge on Friday, June 13, 2014.
According to court documents, Cathy Ross Vinnett opened the D&C Tax Service in 2006. In 2008, she and her daughter, Lashanda Vinnett, created River Parish Tax Professionals for the purpose of filing fraudulent tax returns. The Vinnetts, through River Parish, filed approximately 310 tax returns that falsely claimed the First-Time Homebuyer Credit, the Earned Income Tax Credit, as well as the listing of false dependents, resulting in approximately $1.845 million in fraudulent tax refunds.
Cathy Ross Vinnett and Lashanda Vinnett utilized recruiters to locate potential clients. These recruiters advised potential clients that the federal government was giving out stimulus money and instructed them to visit River Parish to obtain their money. The Vinnetts would interview clients at their office in LaPlace, Louisiana, to obtain their personal information, including their name, address, and Social Security Number. The Vinnetts used that personal information to file false tax returns. The clients had no knowledge that the Vinnetts were filing false returns in their names.
The Vinnetts specifically attempted to conceal and shield Cathy’s identity with the IRS, knowing that the IRS had previously suspended her Electronic Filing Identification Number as a result of another fraudulent tax scheme involving D&C Tax Service. Additionally, in May 2009, Cathy Ross Vinnett knowingly made material false statements to IRS federal agents when she claimed she had no knowledge about false tax returns being prepared at River Parish, that she did not own a tax business, and that her brother was the owner of River Parish.
United States District Court Judge Ivan L.R. Lemelle will sentence Cathy Ross Vinnett on October 1, 2014. Lashanda Vinnett will be sentenced on September 17, 2014. The Vinnetts face a maximum penalty of ten years imprisonment, followed by up to three years of supervised release, restitution, and a $250,000 fine.
Gabriel Grchan, Special Agent in Charge of IRS-Criminal Investigation, stated that the guilty pleas entered by Cathy and Lashanda Vinnett represent a great victory for all U.S. taxpayers. A tax stimulus, such as the First-Time Homebuyer’s Credit, is meant to strengthen the country’s economy. When these types of programs are exploited by fraud, it cannot be tolerated. IRS-CI will continue working to bring to justice those individuals who scheme and conspire to benefit themselves at the expense of other citizens and the government.
This case is being investigated by special agents from the Internal Revenue Service-Criminal Investigation Division. The prosecution of this case is being handled by Fraud Unit Chief and Assistant U.S. Attorney Brian M. Klebba and Assistant U.S. Attorney Matthew Payne.
In related news, the Vinnetts’ actions have left a trail of victims who had their personal information compromised. It is essential for taxpayers to be aware of the risks of tax-related identity theft and to take necessary precautions to protect their personal information.
The case serves as a reminder of the importance of honesty and integrity in tax preparation. Tax preparers have a responsibility to uphold the law and ensure that their clients’ tax returns are accurate and truthful.
Related Federal Cases
- Olsen Saravia-Hernandez, Tax Fraud Conspiracy, Louisiana 2023 · Louisiana
- Nisika West, Tax Fraud, Louisiana 2012 · Louisiana
- Michael Paul Boyter, Wire Fraud and Tax Evasion, Louisiana 2014 · Louisiana
- Rommel Cordova, Tax Return Fraud, Louisiana 2011 · Louisiana
- Amy Evangelista, Tax Fraud, California 2023 · Louisiana
Key Facts
- State: Louisiana
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
