New Orleans Woman Sentenced for Tax Fraud

New Orleans’ Julie Merlin Zanco, 44, has been sentenced for her role in a stunning case of tax fraud. U.S. Attorney Kenneth A. Polite announced that Zanco was sentenced to serve three years probation and pay $9,838 in restitution after pleaded guilty to making false statements on income tax returns.

According to court documents, Zanco’s husband discovered someone had opened a brokerage account in his name and used it to acquire collateralized mortgage obligations (CMOs) through fraudulent means. Despite knowing the CMOs were not theirs, Zanco and her husband gained control of the accounts and siphoned off the interest proceeds to other financial accounts they controlled.

Between March 18, 2013, and November 18, 2013, Zanco used the funds totaling approximately $54,980 for personal expenses, including purchasing a boat. She failed to report this income on her 2013 tax return, leading to an $838 refund instead of the $9,000 she owed in taxes.

U.S. District Judge Carl J. Barbier imposed the sentence, which includes a probation term and the substantial restitution order. Zanco’s actions were deemed serious enough to warrant federal charges, highlighting the severity of tax fraud even when seemingly small amounts are involved.

U.S. Attorney Polite commended the Internal Revenue Service – Criminal Investigations and the Federal Bureau of Investigation for their relentless pursuit of justice in this case. Assistant United States Attorney Jordan Ginsberg was credited with leading the prosecution against Zanco.

This conviction serves as a stark reminder of the consequences faced by those who engage in financial fraud, particularly when it involves the deliberate manipulation of tax returns to enrich oneself at the expense of legitimate taxpayers and government revenue.