A former IRS employee has been sentenced to 24 months in prison for her role in a complex tax fraud scheme that bilked the government out of nearly $1 million.
Valorie Shaw, 38, of Oakland, pleaded guilty on January 23, 2015, to conspiracy to file false claims. She was employed as a tax return preparer at ‘Kwiktax’ for three years.
Shaw’s scheme involved filing false tax returns using personal identifying information she obtained illegally from Kwiktax clients. She used their names, dates of birth, and Social Security numbers without their knowledge or consent.
During 2011 and 2012, Shaw prepared false tax returns that she filed with the IRS, requesting refunds totaling $487,248 and $495,789 respectively. The purported filers listed on those tax returns were not entitled to tax refunds because the wage and tax withholding information listed on the returns were fictitious.
Shaw also filed false W-2 information that stated the purported filers worked for the employers listed on the W-2s, even though she knew the information was false. The investigation into Shaw’s scheme was carried out by the Internal Revenue Service, Criminal Investigation.
Assistant U.S. Attorney Thomas Newman is prosecuting the case, which resulted in Shaw being sentenced to 24 months in prison and ordered to pay restitution of $309,834. The Honorable Jon Tigar, U.S. District Judge, imposed the sentence.
Shaw is set to surrender on September 18, 2015, to begin serving her sentence. The case serves as a reminder of the importance of protecting personal identifying information and the severe consequences of committing tax fraud.
As a former IRS employee, Shaw’s actions were particularly egregious and demonstrate the need for vigilance within the tax preparation industry to prevent similar schemes from arising in the future.
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Related Federal Cases
- Tax Fixer Gets 18 Months for $1.2M Fraud Scheme · Alaska
- Bellevue Tycoon Hazelrigg Indicted for Tax Fraud and SSN Misuse · Washington
- Clarence Hicks Indicted in Identity Fraud Tax Scam · Alabama
- Stockton Woman Faces 21 Fraud Counts in Unemployment and Tax Scams · California
- Louis Joseph Vadino Convicted in $2.1M Tax Evasion, Passport Fraud · California
Key Facts
- State: California
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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