Willowick Woman Gets 4 1/2 Years for $5.2M Tax Scam

WILLOWICK, OH – Margaret Monone Greenaway, 53, of Willowick, Ohio, is headed to federal prison after being sentenced to 54 months for a brazen tax fraud scheme that netted her over $5.2 million in false refunds. U.S. District Judge David D. Dowd, Jr. handed down the sentence today, along with a three-year term of supervised release following Greenaway’s incarceration.

Greenaway pleaded guilty on October 17, 2013, to two counts related to the fraudulent tax returns filed under her former married name, Margaret M. Demaria-Susevich. Between 2010 and 2011, she claimed a staggering $1,326,671 in refunds for 2010 and a whopping $3,945,123 for 2011 – all based on fabricated income.

The scheme was simple, yet audacious. Greenaway concocted fake W-2 forms, mirroring legitimate employer information from her husband’s tax documents, but inflating the wage and withholding amounts. She never actually worked for the employer listed on the forms. In 2011, she successfully received a $3.9 million refund check, depositing it into newly opened bank accounts.

However, Greenaway’s luck ran out quickly. A sharp-eyed bank employee flagged the check as potentially fraudulent, alerting law enforcement and the IRS. The IRS was able to recover the funds before Greenaway could spend them. She was initially released on bond after her arrest on May 16, 2013, but Judge Dowd revoked her bond after determining she violated the terms of her release.

The case wasn’t without its complications. Greenaway spent time in federal custody undergoing a mental competency evaluation to determine if she was fit to stand trial. Judge Dowd ultimately found her competent, setting the stage for a trial that never happened. Facing the evidence, Greenaway entered a guilty plea the day before jury selection was scheduled to begin.

Assistant United States Attorney John M. Siegel prosecuted the case, following a thorough investigation by the Internal Revenue Service – Criminal Investigation, Cleveland, Ohio. This case serves as a stark reminder that even complex financial crimes will be pursued, and those who attempt to defraud the government will be held accountable. Greenaway’s attempt to steal over $5 million from taxpayers ended with a lengthy prison sentence.