Woman Sentenced To Prison For Tax Crimes
Rhoda A. Calloway, age 46, was sentenced to fifteen months in prison after previously pleading guilty to tax crimes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
U.S. District Judge Solomon Oliver also ordered Calloway to pay restitution of $93,249.
Calloway pleaded guilty in November to one count of conspiracy to submit false claims and 34 counts of submitting false claims for the tax years 2004, 2005, 2006 and 2007.
Calloway and her co-conspirators executed a scheme to prepare false tax returns for individuals. She and her co-conspirators recruited claimants who they knew to be unemployed and who did not recently file tax returns with the promise that they could obtain government grant money or other “free” government money or jobs upon completion of an application, according to court records.
Instead of signing applications for the promised grant money or free government money, Calloway caused some claimants to unknowingly sign tax returns which were partially covered so that the claimants would not know what they were signing. False tax returns were filed for the claimants, using fictitious income figures used to maximize the Earned Income Tax Credit, resulting in false tax refunds, according to court records.
Calloway and her co-conspirator obtained the false refunds and used the funds for their personal use, causing a loss to the IRS of $107,009, according to court records.
This case is being prosecuted by Assistant United States Attorney Vasile Katsaros and Special Assistant United States Attorney Perry D. Mastrocola, following an investigation by the Internal Revenue Service Criminal Investigation Division.