Maureen Holleran, Filing False Tax Return, New York 2023

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Maureen Holleran, Filing False Tax Return, New York 2023

BUFFALO, N.Y. – In a shocking turn of events, a Buffalo woman has been sentenced to prison for filing a false tax return, raking in a staggering $2,370,848.24 in just three years.

Maureen Holleran, 62, was convicted of filing a false tax return and was sentenced to serve 18 months in prison by U.S. District Judge Richard J. Arcara. Assistant U.S. Attorney Douglas A.C. Penrose, who handled the case, stated that between September 2015 and October 2023, Holleran worked remotely as a worker’s compensation claims handler for Insurance Company 1, which is headquartered in Canada.

Holleran evaluated and, if appropriate, paid workers compensation claims for policies issued by Insurance Company 1. If a claim was determined to be eligible, Holleran had authority to send payment to the claimant. She had the authority to send payments of up to $2,000 without further approval by her supervisor.

Between July 2020 and June 2023, Holleran submitted more than 1,200 fraudulent claims in Insurance Company 1’s claim processing system, with each claim below the $2,000 threshold. Claims were then paid into bank accounts controlled by Holleran.

Holleran created fictitious expenses, such as claims for lost wages and reimbursements for medical supplies and copays, to justify the fraudulent payments. To carry out the scheme, she created fictitious email accounts that superficially appeared to be associated with the policy claimant.

The Internal Revenue Service estimates tax due and owing for the tax years 2020 through 2022 is $545,792, which Holleran failed to report on her income tax returns for those years. The total amount of embezzled funds is approximately $1,592,095.

The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Acting Special Agent-in-Charge Harry Chavis. Holleran’s actions have sent shockwaves through the community, leaving many to wonder how such a massive scheme could go undetected for so long.