Trauger Russell F., Tax Refund Fraud, Pennsylvania 2016

SCRANTON, Pennsylvania – In a shocking case of tax refund fraud, five individuals have been sentenced for their involvement in a scheme to defraud the government through the filing of false tax returns.

The scheme, uncovered by the Internal Revenue Service, Criminal Investigation, revealed that the defendants were involved in filing false Forms 1099-OID in support of tax returns that fraudulently claimed refunds.

Defendant Russell F. Trauger, 67, of Factoryville, pleaded guilty in December 2012 to making a false claim against the government. Trauger was sentenced by Judge Robert Mariani on June 20, 2016, to serve 24 months in prison and to make restitution to the government in the amount of $233,686.55.

Another defendant, Donald K. Murley, 64, of Cresco, also pleaded guilty in December 2012 to making a false claim against the government. Murley was sentenced by Judge Mariani on June 21, 2016, to serve 21 months in prison and to make restitution to the government in the amount of $243,462.62.

Harold C. Trauger, Jr., 70, of Factoryville, pleaded guilty in December 2012 to making a false claim against the government. Trauger was sentenced by Judge Mariani on June 21, 2016, to 2 years’ probation conditioned upon 6 months’ of home confinement and electronic monitoring. He was also ordered to pay a fine of $7,500.

Bryan Cavage, 36, of Florida, pleaded guilty in August 2013 to making a false claim against the government. Cavage was sentenced by Judge Mariani on June 23, 2016, to serve 5 months in prison and to make restitution to the government in the amount of $37,152.38.

Laura Laporta, 49, of Cresco, pleaded guilty in December 2012 to making a false claim against the government. Laporta was sentenced by Judge Mariani on June 23, 2016, to serve 4 months in prison and to make restitution to the government in the amount of $32,564.

The cases were prosecuted by former Assistant U.S. Attorney Wayne Samuelson and Assistant U.S. Attorney William Houser.

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