Kalena Latoya Winston, 39, of Killeen, Texas, has admitted to running a fraudulent tax return operation that flooded the IRS with false filings from clients across multiple states. Winston pleaded guilty Thursday, Oct. 13, 2016, in federal court in Kansas City, Missouri, before U.S. District Judge Beth Phillips, copping to a scheme that exploited the Earned Income Tax Credit and siphoned off taxpayer refunds.
From 2011 to 2012, Winston marketed her tax preparation services to individuals in Colorado, Kansas, and Tennessee, luring them in with promises of big refunds. But instead of honest filings, she fabricated Schedule C businesses on their returns—phantom enterprises designed solely to inflate credits. She also tacked on false dependents, boosting refund amounts that were never legally owed.
To keep control of the payouts, Winston rerouted refund debit cards to addresses controlled by her co-conspirators—not her clients. This allowed her to intercept the money before victims even knew their returns had been filed. In at least two cases, she went further: using clients’ personal information from their 2010 returns to file unauthorized 2011 and 2012 returns without their knowledge.
The IRS caught wind of the pattern. Most of the fake returns landed at its Kansas City service center, where red flags began piling up. Investigators traced the fraudulent filings back to Winston, uncovering a web of falsified documents and stolen identities. The total intended tax loss for the charged conduct? $70,570. But the full damage—according to IRS calculations—reaches nearly $200,000.
Now, Winston faces the consequences. Under federal law, she could be locked up for up to 10 years without parole. The maximum sentence is set by Congress, but the final call rests with the court, guided by sentencing guidelines and other legal factors. Her sentencing hearing is set for March 14, 2017.
The case is being handled by Assistant U.S. Attorney Paul S. Becker and investigated by IRS-Criminal Investigation. Federal prosecutors in the Western District of Missouri, led by U.S. Attorney Tammy Dickinson, say the guilty plea sends a message: scam artists exploiting the tax system will be hunted down and held accountable.
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Key Facts
- State: Missouri
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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