A covert tax preparation scheme operated by a Las Vegas woman has led to a significant prison sentence in Oregon.
Gloria Harris, 48, was sentenced to 39 months in federal prison and three years of supervised release for operating a fraudulent tax return business, a scheme that targeted the Internal Revenue Service (IRS).
According to court documents, between 2012 and 2016, Harris prepared more than 100 fraudulent tax returns, requesting nearly $600,000 in refunds from the IRS.
In what appears to be a deliberate attempt to hide her involvement, Harris would file client tax returns as ‘self-prepared’ to mask her participation in the filings.
Harris would increase the size of the fraudulent returns by falsely claiming unrelated children as dependents to qualify clients for various tax breaks, including the Earned Income Tax Credit.
However, Harris’s scheme began to unravel as she raised suspicion among certain clients. She refused to provide copies of filed returns, chastised them for asking questions, and withheld refunds. On one occasion, Harris delivered a $1,400 ‘refund’ in cash to a client in a parking lot, despite the client being due a refund of more than $8,500 from the IRS.
Harris had previously pleaded guilty to one count each of making false, fictitious, or fraudulent claims against the U.S. and aggravated identity theft on July 18, 2018.
As part of the sentence, Harris was ordered to pay more than $548,000 in restitution.
The case was investigated by IRS Criminal Investigation and prosecuted by Quinn P. Harrington, Assistant U.S. Attorney for the District of Oregon.
Key Facts
- State: Oregon
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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