News and Press Releases

United States Attorney Benjamin B. Wagner
Eastern District of California

Former IRS Employee Pleads Guilty To Defrauding The State Employment Development Department

FOR IMMEDIATE RELEASE
Monday, June 11, 2012
 

Docket #: 1:12-CR-00075-LJO-DLB

 

 

FRESNO, Calif. — Cheryl Lynn Frazier, 60, of Fresno, pleaded guilty today to mail fraud, United States Attorney Benjamin B. Wagner announced.

According to her plea agreement, from October 2008 through April 2011, Frazier fraudulently claimed and received state unemployment benefits despite being a full-time IRS employee. Prior to becoming a full-time employee, Frazier had been a seasonal employee with the IRS. During her periods of off-season unemployment, Frazier had filed for and received unemployment benefits from the California Employment Development Department (EDD). In October 2008, Frazier became a full-time IRS employee and continued claiming unemployment benefits by underreporting or omitting her hours and wages on claim forms mailed to EDD. Frazier continued receiving unemployment checks mailed by EDD until her scheme was detected in April 2011.

This case is the product of an investigation by the U.S. Treasury Inspector General for Tax Administration and the California Employment Development Department. Assistant United States Attorney Ian Garriques is prosecuting the case.

Frazier is scheduled to be sentenced on September 4, 2012 by United States District Judge Lawrence J. O’Neill. The maximum statutory penalty she faces is 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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