Kimberly Bagneski, 47, of Waupun, Wisconsin, is under federal indictment for orchestrating a brazen tax refund scam that netted more than $90,000 in fraudulent claims. On February 13, 2018, a federal grand jury returned a 13-count indictment accusing Bagneski of preparing and filing false federal income tax returns filled with fabricated deductions, fake tax credits, and phony business losses.
According to the U.S. Attorney’s Office for the Eastern District of Wisconsin, Bagneski didn’t just file the returns—she electronically submitted at least 20 of them, each designed to squeeze money from the IRS through deception. Every return carried inflated or entirely fictitious claims, all pointing to a calculated scheme to exploit the tax system for personal gain.
But the fraud didn’t end at the filing. Investigators allege that Bagneski rerouted nearly every dollar of the claimed refunds into bank accounts she controlled. This financial hijacking turned taxpayer refunds—meant for legitimate filers—into illicit payouts funneled straight into her pockets.
The charges against Bagneski include violations of Title 18, United States Code, Sections 2 and 287, which cover making false claims against the government. Each count represents a separate act of deception, stacking the legal pressure on the former tax preparer as federal authorities tighten the screws.
This case was investigated by IRS Criminal Investigation, the federal agency tasked with rooting out financial fraud, and is being prosecuted by Assistant United States Attorney Matthew Jacobs. No trial date has been set, and under federal law, Bagneski is presumed innocent until proven guilty.
Public Information Officer Dean Puschnig of the U.S. Attorney’s Office confirmed the indictment and urged the public to report suspicious tax preparation activities. ‘The integrity of the tax system depends on honest filings,’ Puschnig said. ‘When someone like Bagneski rigs the game, it’s the rest of us who pay the price.’
Related Federal Cases
- Herbert C. Watts Jailed for Tax Evasion on $2.3M Cash Haul · Wisconsin
- Family Sentenced in $3M Tax Scheme – Bouraxis Clan Convicted · Wisconsin
- Tomeki L. Tyson Indicted on 21 Counts of Tax Fraud · Wisconsin
- Howard Webber Convicted in $600K Prisoner Tax Fraud Scheme · Wisconsin
- San Francisco Fraudster Sentenced for Identity Theft Tax Fraud · Wisconsin
Key Facts
- State: Wisconsin
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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