Stanley J. Wardle, Filing False Claims for Income Tax Refunds, Utah 2009

SALT LAKE CITY – A 65-year-old Spanish Fork, Utah man admitted Monday to a brazen scheme to defraud the U.S. government, pleading guilty to nine counts of filing false claims for income tax refunds. Stanley J. Wardle, facing a hefty prison sentence, confessed in U.S. District Court to orchestrating a tax fraud totaling $653,884.

The Justice Department and the Internal Revenue Service (IRS) announced the guilty plea, a culmination of an investigation that began with a February 15, 2012, indictment. Wardle’s scheme allegedly kicked off around January 22, 2009, when he filed a bogus U.S. Individual Income Tax Return for 2008, attempting to claim a $32,115 refund.

But the initial theft was just the beginning. The indictment reveals Wardle didn’t stop there, extending the fraud by submitting false claims on behalf of others between December 8, 2008, and May 13, 2009. He acted as a conduit, exploiting the tax system for personal gain and involving other parties in the criminal activity.

The scope of the fraud is significant. Federal prosecutors say Wardle was involved in a total of $653,884 in false refund claims. While the details of *how* these claims were falsified remain largely unreleased, the sheer volume suggests a sophisticated, if ultimately unsuccessful, attempt to game the system.

Wardle now awaits sentencing before U.S. District Judge Dee Benson on February 27, 2014. He faces a statutory maximum of five years in prison for each of the nine false claim charges. Additionally, he could be slapped with a fine of up to $250,000 – or twice the gross gain or loss resulting from his actions – per charge. That means a potential fine exceeding $1 million.

Assistant Attorney General Kathryn Keneally of the Tax Division lauded the work of the IRS – Criminal Investigation special agents and the Tax Division Trial Attorneys, Michael Romano and Stuart Wexler, who successfully prosecuted the case. This case serves as a stark reminder that the IRS is actively pursuing and prosecuting those who attempt to defraud the U.S. tax system.

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