Frye Admits Role in $583K IRS Scam

HARTFORD, CT – Nancy J. Frye, 51, of Bristol, Connecticut, has pleaded guilty to conspiracy to commit wire fraud, admitting her central role in a sophisticated IRS impersonation scam that bilked over 500 victims across the United States and Canada out of an estimated $583,000. The guilty plea, entered in Hartford federal court today, brings a key figure in the operation one step closer to facing justice.

The scheme, a common but devastating tactic, relies on fraudsters posing as IRS employees. They cold-call victims, claiming outstanding tax debts and threatening immediate arrest or legal action if payment isn’t made immediately. Victims, understandably panicked, are directed to wire funds through services like MoneyGram and Western Union to accounts controlled by the scammers. According to investigators, the targets weren’t limited to US citizens; Canadians were also victimized by the scheme.

Court documents reveal that in October 2015, Frye began receiving calls and texts from recruiters who enlisted her to collect wired funds. Her job: pick up the money and deposit it into designated bank accounts. Frye didn’t work alone. She quickly recruited Douglas Martin, 52, of Bristol, and others, expanding the operation’s reach throughout central Connecticut. Between October 2015 and May 2016, Frye and her network funnelled approximately $583,000 collected from roughly 527 victims into the scam’s coffers.

Federal authorities arrested Frye and Martin on September 15, 2016. Martin also pleaded guilty to the same charge on May 18, 2017, and is currently awaiting sentencing. This case highlights the alarming scale of IRS impersonation scams, with the Treasury Inspector General for Tax Administration (TIGTA) reporting over 1.9 million related calls since October 2013, resulting in losses exceeding $56 million for more than 10,400 victims.

U.S. Attorney Deirdre M. Daly stressed that the investigation remains active. She urges anyone receiving suspicious calls from individuals claiming to be IRS employees – or anyone who has fallen victim to such a scam – to immediately report the incident to TIGTA at https://www.treasury.gov/tigta/contact_report_scam.shtml. Frye faces a maximum term of imprisonment of 20 years at her sentencing on September 20, 2017, before U.S. District Judge Vanessa L. Bryant.

The investigation was a collaborative effort led by TIGTA and the U.S. Postal Inspection Service, with valuable assistance from the Rocky Hill Police Department, Bristol Police Department, and New York State Department of Taxation and Finance. Assistant U.S. Attorney Peter S. Jongbloed is prosecuting the case, aiming to dismantle this criminal network and bring all perpetrators to justice. This case serves as a stark reminder: if it sounds too good to be true, or if it involves threats and urgent demands for money, it’s likely a scam.