Valorie Shaw, Tax Fraud, California 2015

Former IRS Employee Sentenced to Prison for Tax Fraud

Oakland, California - In a shocking case of tax fraud, a former IRS employee has been sentenced to 24 months in prison for conspiring to file false tax claims. Valorie Shaw, 38, of Oakland, was found guilty of conspiracy to file false claims and was ordered to pay restitution of $309,834.

According to the investigation, Shaw was employed as a tax return preparer at 'Kwiktax' for three years. Prior to working at Kwiktax, she held a variety of jobs, including working as a document transporter for the IRS. During 2011 and 2012, Shaw prepared false tax returns that she filed with the IRS.

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. Shaw filed the false tax returns using personal information she obtained illegally.

Specifically, Shaw used personal identifying information of Kwiktax clients, including their names, dates of birth, and Social Security numbers, without these victims' knowledge. During 2011, Shaw assisted in filing false tax returns requesting refunds in an amount no less than $487,248, for the 2010 tax year. During 2012, Shaw assisted in filing false tax returns requesting refunds totaling $495,789 for the 2011 tax year.

Shaw was indicted on August 14, 2014, and was charged with conspiracy to file false claims, in violation of 18 USC § 286. She pleaded guilty to that charge and was sentenced by the Honorable Jon Tigar, U.S. District Judge. Judge Tigar also ordered Shaw to surrender on September 18, 2015, to begin serving her sentence.

Assistant U.S. Attorney Thomas Newman is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation. This case highlights the importance of protecting taxpayer information and the severe consequences of tax fraud.

In a statement, United States Attorney Melinda Haag said, 'This case demonstrates our commitment to holding accountable those who abuse their positions of trust to commit fraud and other crimes.' The case serves as a reminder to taxpayers to be vigilant and report any suspicious activity to the authorities.

The investigation and prosecution of this case is a significant step towards ensuring the integrity of the tax system and protecting the public interest. It also sends a strong message to those who engage in tax fraud that they will be held accountable for their actions.

Source: https://www.justice.gov/usao-ndca/pr/former-irs-employee-sentenced-24-months-tax-fraud