A Kansas woman has been charged with tax evasion and COVID-19 loan program fraud, according to a federal indictment returned yesterday in Kansas City.
Michele O’Connor, 52, of Louisburg, is accused of filing false tax returns and claiming tens of thousands of dollars in personal expenses as charitable deductions to the ‘Church of Revelation and Love,’ a purported church she and her husband created.
Between 2008 and 2015, O’Connor self-reported that she owed approximately $300,000 in taxes, but failed to pay them. In 2011, the IRS audited her 2008 and 2009 tax returns and concluded that O’Connor had improperly claimed tens of thousands of dollars in personal expenses as charitable deductions.
The IRS assessed over $40,000 in additional taxes against O’Connor, but she continued to evade payment. Between 2011 and 2023, O’Connor filed three separate false and frivolous bankruptcy petitions, purchased approximately $250,000 in cashier’s checks, and closed her personal bank accounts and used her business’ bank accounts to pay personal expenses.
By 2020, O’Connor owed the IRS nearly $500,000 in taxes, penalties, and interest.
In 2020, O’Connor submitted 34 fraudulent COVID-19 Economic Injury Disaster Loan (EIDL) applications on behalf of her real estate business and seven other corporate entities she created. She received nearly $300,000 from her fraudulent EIDLs, which she used for personal purposes, including $115,000 to purchase cryptocurrency.
O’Connor faces a maximum penalty of five years in prison for tax evasion and a maximum penalty of 20 years in prison for each count of wire fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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Key Facts
- State: Kansas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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