Three defendants are facing federal charges in a brazen $3.5 million tax fraud conspiracy that exploited the poor and homeless across Ohio and Pennsylvania. Maryam Hague, 38, of Shaker Heights; Muhammad Hague, 40, of Avon; and Richard A. Warren, 37, of Philadelphia, are accused of orchestrating a multi-year scheme to file 786 fraudulent tax returns using stolen identities and falsified income claims.
Maryam Hague, operator of Hague United Services—a tax prep business run from her homes in Cleveland and Shaker Heights—allegedly masterminded the scam. Between 2011 and 2013, she recruited her brother, Muhammad Hague, to gather personal identification from vulnerable individuals, then prepared and filed false returns in their names. She later trained him to file the fraudulent claims independently, court documents reveal.
Muhammad Hague, while still employed at the Cleveland Water Department, brought Natasha Johnson into the fold in 2010. Together, they ran Hague Financial Services, a front operation that posed as a legitimate tax preparation service. Investigators say they conducted business during work hours at the Water Department and aggressively targeted low-income neighborhoods and homeless shelters using flyers and door-to-door solicitation.
The returns falsely reported income from unverifiable ‘household help’ jobs—like caregiving and lawn care—and fraudulently claimed credits including the Earned Income Credit, Making Work Pay Credit, and American Opportunity Credit. No legitimate employment or education expenses supported the claims, the DOJ says.
Maryam Hague expanded the operation to Philadelphia, enlisting Richard A. Warren and his wife to recruit victims. In exchange, she paid them a $1,000 referral fee per victim, funneled through shell company bank accounts tied to the victims’ stolen refunds. Prosecutors are now seeking forfeiture of Maryam Hague’s Shaker Heights residence.
Maryam Hague faces one count of conspiracy to commit theft of public money and one count of actual theft. Muhammad Hague and Warren each face one count of conspiracy to make false claims. All three could face years in federal prison if convicted. This case was investigated by IRS Criminal Investigations and is being prosecuted by Assistant U.S. Attorney Elliot Morrison. An indictment is not evidence of guilt.
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Key Facts
- State: Ohio
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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