Woman Pleads Guilty To Her Role In Scheme To Defraud IRS
MINNEAPOLIS—Today in federal court, Cassidy McDaniel pleaded guilty to her role in a scheme to defraud the Internal Revenue Service (“IRS”) out of money by claiming tax refunds to which she was not entitled. McDaniel specifically pleaded guilty to one count of conspiracy to defraud the federal government. McDaniel, who was charged via an Information on May 2, 2012, entered her plea before United States District Judge Joan N. Ericksen.
In her plea agreement, McDaniel admitted she worked with co-conspirators to obtain the names, social security numbers, and other identifiers of unknowing individuals. McDaniel and her co-conspirators then used that information to create false 2010 federal income tax returns that included claims for refunds. In order to receive the refunds, the co-conspirators established or had others establish fictitious income tax preparation businesses in Minnesota and elsewhere, where the refunds were to be sent. Under the direction of McDaniel’s co-conspirators, McDaniel and others also opened bank accounts in the names of the fictitious businesses so the refunds could be deposited. McDaniel’s fictitious business was called C and M Tax Preparation.
Between February 17, 2011, and March 25, 2011, McDaniel received, via C and M Tax Preparation accounts, approximately $386,943.20 in fraudulently obtained 2010 federal income tax refunds. On February 17, 2011, McDaniel began transferring and withdrawing from those accounts portions of the refund money, for use by herself and other co-conspirators.
For her crimes, McDaniel faces a potential maximum penalty of ten years in federal prison, as well as possible fines and forfeitures. Judge Ericksen will determine her sentence at a future hearing, not yet scheduled.
This case is the result of an investigation by the Internal Revenue Service-Criminal Investigation Division. It is being prosecuted by Assistant U.S. Attorney Karen B. Schommer.
The Minnesota U.S. Attorney’s Office wants to remind people to protect themselves from identity theft. For more information, visit http://www.stopfraud.gov/protect-identity.html.
The IRS-Criminal Investigations also urges citizens to review the Taxpayer Guide to Identity Theft, which can be found at http://www.irs.gov.
Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.