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Fraud

Maryland Woman Charged with Tax Refund Fraud Scheme

Strategic Insights

— 1 min read

Kendra Nicole Scarborough, a resident of Oxon Hill, Maryland, has been charged with tax refund fraud, theft of government funds, and money laundering by a federal grand jury in Baltimore. The indictment alleges that Scarborough assisted in the preparation and filing of false tax returns between December 2019 and March 2020, claiming nonexistent payments or withholdings and requesting over $1.1 million in refunds from the IRS. The case highlights the importance of tax compliance and the consequences of violating tax laws.

Key Takeaways:

  • Kendra Nicole Scarborough, a Maryland resident, has been charged with tax refund fraud, theft of government funds, and money laundering.
  • The indictment alleges that Scarborough assisted in the preparation and filing of false tax returns between December 2019 and March 2020.
  • Scarborough allegedly claimed nonexistent payments or withholdings and requested over $1.1 million in refunds from the IRS.
  • The IRS issued refunds to Scarborough of over $412,000 as a result of one of the alleged false tax returns.
  • If convicted, Scarborough faces a maximum penalty of 20 years in prison for the money laundering charge and up to 10 years for the theft of government funds charge.
  • Scarborough also faces additional penalties, including supervised release, monetary penalties, and restitution.
  • The case is being prosecuted by the Tax Division of the Justice Department, with IRS Criminal Investigation conducting the investigation.
  • Assistant Chief Sarah Ranney and Trial Attorney Alexandra Fleszar are leading the prosecution.

Statistics:

  • Over $1.1 million in refunds was allegedly requested from the IRS.
  • The IRS issued refunds of over $412,000 as a result of one of the alleged false tax returns.
  • Scarborough faces a maximum penalty of 20 years in prison for money laundering.
  • The maximum penalty for theft of government funds is 10 years in prison.
  • The maximum sentence for each of the three charges of aiding and assisting in the preparation of false tax returns is three years in prison.

Sources:

  • https://www.justice.gov/opa/pr/maryland-woman-charged-tax-refund-fraud

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