Tax Cheat Sentenced to Nearly Four Years

A Cleveland woman has been sentenced to nearly four years in prison for her role in a conspiracy to file false tax claims using stolen identities.

Gwendolyn N. White, 32, was ordered to pay $342,365 in restitution after being found guilty of one count of conspiracy to file false claims for income tax refunds with the IRS and ten counts of filing false claims for refunds with the IRS.

The scheme, led by Kenneth White, 48, of Cleveland, involved recruiting people to use as claimants on false tax returns, often with the promise of substantial refunds. Victims included people incarcerated, whose names and Social Security numbers were used without their knowledge or consent, according to court records.

Gwendolyn White prepared and electronically filed 10 false income tax returns for the year 2008 in the name of the claimants, claiming a total of approximately $1,995,687, according to the indictment.

“This defendant knowingly filed false income-tax returns in the names of people whose identities were stolen,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “She tried to game the system to enrich herself.”

The IRS will continue to vigorously pursue those who unjustly enrich themselves by preparing false claims for refunds, warned Kathy Enstrom, Special Agent in Charge of IRS Criminal Investigation, Cincinnati Field Office.

White is scheduled to be sentenced in February. This case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by the Internal Revenue Service – Criminal Investigations.

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