Cindy Lee Linebaugh, 48, has been convicted of orchestrating a massive tax fraud scheme that cheated the federal government out of more than $287,000.
According to court documents, Linebaugh, a St. Paul resident, began the scam in February 2010, when she started preparing and filing false tax returns on behalf of herself and others. The scheme involved using fake W-2s that falsely claimed individuals were employed by and earned wages from employers such as Northwest Airlines and the City of St. Paul.
Using online tax-preparation software, Linebaugh prepared and filed approximately 73 false returns for tax years 2009 and 2010. The refunds were loaded onto a debit card and sent directly to the individuals by the IRS. Linebaugh charged individuals anywhere from $100 to $300 for her tax-preparation services.
The total amount of the tax loss for all returns was approximately $287,561. The scheme was uncovered by the Internal Revenue Service – Criminal Investigation Division.
Linebaugh pleaded guilty to one count of False, Fictitious and Fraudulent Claims on February 24, 2015, before U.S. District Judge Susan Richard Nelson in St. Paul, Minn.
The case is being prosecuted by Assistant U.S. Attorney John E. Kokkinen. This is just the latest example of the IRS’s efforts to crack down on tax fraud and protect the integrity of the tax system.
Linebaugh’s actions have cost the federal government dearly, and she will now face the consequences of her crimes. The public has a right to know when individuals are cheating the system and we will continue to shine a light on these cases to ensure justice is served.
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Key Facts
- State: Minnesota
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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