Lakisha K. Pinkney, 42, of Eastpointe, MI, has admitted to fueling a three-year scheme to defraud the federal government by filing rigged tax returns through a now-shuttered Pittsburgh tax mill. Pinkney pleaded guilty to one count of Aiding or Assisting in the Preparation or Filing of False Federal Income Tax Returns, marking the end of a federal probe into Cititax Refund’s crooked operations between 2010 and 2013.
According to court records unsealed in Pittsburgh, Pinkney worked as a tax preparer at Cititax Refund, a storefront operation that marketed fast refunds to low-income filers. Instead of honest filings, she systematically inflated business income losses using falsified Schedule C forms—padding claims to trigger larger tax refunds for clients who never ran the businesses listed.
The fraud added up fast. Pinkney’s fabricated returns sought approximately $626,000 in illegitimate refunds from the U.S. Treasury. Many of the returns were electronically filed, making detection harder and the spread of deception faster. The IRS only caught the pattern after a data sweep flagged abnormal refund clusters tied to Cititax Refund.
U.S. Attorney Scott W. Brady didn’t mince words: “This wasn’t oversight. This was deliberate fraud,” he said in a statement. “Pinkney didn’t help taxpayers—she exploited them and abused the system for profit.” The case was prosecuted by Assistant U.S. Attorney Gregory C. Melucci, who built the case on forensic document tracing and client testimony.
Judge Nora Barry Fischer, known for no-nonsense rulings in white-collar cases, has set sentencing for September 18, 2019, at 11 a.m. in federal court. Each count carries a maximum of 3 years in prison and a $100,000 fine. While the Federal Sentencing Guidelines will weigh Pinkney’s criminal history and the severity of the offense, the paper trail is damning.
The investigation was led by IRS-Criminal Investigations, which continues to target fraudulent tax preparers nationwide. This case underscores a broader crackdown on ‘ghost preparers’—unlicensed filers who vanish after filing rigged returns. For now, Pinkney waits, her fate sealed by receipts, forms, and the cold arithmetic of federal justice.
Related Federal Cases
- Tax Thief Gets 20 Months · Pennsylvania
- Tax Preparer Wayne Lieberman Faces Federal Charges · Pennsylvania
- PA Businessman Pleads Guilty to $473K IRS Tax Fraud · Pennsylvania
- Lottery Winner Sherman Friend Sentenced for Tax Evasion · Pennsylvania
- Ebensburg Woman Pleads Guilty to Tax Fraud Scheme · Maryland
Key Facts
- State: Pennsylvania
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
