Paula Forbes, False Tax Return Scheme, Wisconsin 2017

Crime Pays, But Justice Doesn’t Come Cheap: Milwaukee Woman Sentenced to 24 Months in Prison for False Tax Return Scheme

Paula Forbes, a 49-year-old Milwaukee woman, has been sentenced to 24 months in federal prison followed by three years of supervised release. She was also ordered to pay $143,016 in restitution for her role in a massive tax return fraud scheme.

According to court records, Forbes conspired with others to file false income tax returns that claimed refund payments from the Internal Revenue Service (IRS). Between January 2012 and February 2017, Forbes and her coconspirators gathered individuals’ social security numbers and other personal information, then prepared federal income tax returns that fraudulently claimed wages and federal tax-withholding amounts from several employers.

Forbes submitted the returns electronically to the IRS, signing the returns for individuals, many of whom she had never met. The scheme was so brazen that Forbes filed at least 35 fraudulent tax returns seeking more than $200,000 in tax refund payments. Forbes and her coconspirators shared in the proceeds of the fraudulently obtained tax refunds.

The investigation into Forbes’ scheme was led by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Matthew Jacobs and Matthew Krueger prosecuted the case, securing Forbes’ conviction at a jury trial on February 3, 2017.

Forbes’ prison sentence is a significant blow to those who seek to defraud the system. ‘Crime doesn’t pay,’ said Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin. ‘However, in this case, justice has been served, and the defendant will face the consequences of her actions.’

Forbes’ scheme was a classic example of a white-collar crime, one that targeted the most vulnerable members of society: those who trusted the system to do the right thing. But Forbes and her coconspirators saw an opportunity to line their pockets with cash, no matter the cost to others. And now, Forbes will pay the price for her actions.

Contact Public Information Officer Dean Puschnig at 414-297-1700 for additional information.

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