Mark Allen Garcia, Tax Fraud, Minnesota 2013

Couple Indicted For Making False Tax Claims

MINNEAPOLIS—A federal indictment unsealed recently charges a couple with defrauding the Internal Revenue Service (“IRS”) by filing false individual income tax returns that claimed refunds to which they were not entitled.

The indictment, which was filed under seal on June 18, 2013, charges Mark Allen Garcia and Patricia Ann McQuarry with one count of conspiracy to defraud the United States and two counts of making false claims.

The indictment alleges that between July 2008 and November 2009, the married defendants conspired to obtain money by filing false U.S. Individual Income Tax Returns for tax years 2007 and 2008. Those allegedly fraudulent returns claimed unentitled refunds and, in one instance, resulted in the IRS paying a false refund of approximately $226,000.

For tax years 2007 and 2008, both defendants filed self-prepared tax returns as “married filing separately.” In her return, McQuarry allegedly stated that she had received more than $127,000 in original issue discount (“OID”) income from several financial institutions, and that the entire amount had been withheld and paid, when in fact, none of the listed financial institutions had paid McQuarry any OID income.

As a result of the conspiracy, the defendants allegedly made more than $500,000 in false claims to the IRS. If convicted, the defendants face a potential maximum penalty of ten years in prison for conspiracy and five years on each count of making a false claim.

Mark Allen Garcia and Patricia Ann McQuarry were arraigned on June 19, 2013, for their alleged roles in the conspiracy to defraud the United States and making false claims. This case is the result of an investigation by the IRS-Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Kimberly A. Svendsen.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

Defendant Information:

Defendant: Mark Allen Garcia and Patricia Ann McQuarry

Criminal Charges: Conspiracy to defraud the United States and two counts of making false claims

City and State: Minneapolis, Minnesota

Date: June 18, 2013

Sentence: Pending

Dollar Amounts: Over $500,000 in false claims to the IRS and a false refund of approximately $226,000.

Source: https://www.justice.gov/usao-mn/pr/couple-indicted-making-false-tax-claims