News and Press Releases

United States Attorney Benjamin B. Wagner
Eastern District of California

Federal Employee Arraigned for Filing False Tax Returns

Wednesday, February 20, 2013

Docket #: 1:13-cr-58-LJO



FRESNO, Calif. — Kathleen Valdez, 49, of Fresno, was arraigned today, charged with filing a false tax return, U.S. Attorney Benjamin B. Wagner announced. A federal grand jury in Fresno indicted Valdez on Thursday, February 14, 2013. Valdez entered a plea of not guilty and her next court date is set for March 4, 2013.

According to court documents, Valdez worked for the United States Department of Treasury, Treasury Inspector General for Tax Administration, in Fresno. She filed federal tax returns for 2008 and 2009 that underreported her income, falsely claimed several individuals as her dependents, and claimed childcare expenses for them.

“Allegations of tax fraud are matters to be taken seriously, especially when they involve individuals tasked with ensuring that our nation’s tax system is administered fairly and correctly. Those accused of violating the integrity of the Federal system of tax administration will be prosecuted to the fullest extent of the law.” said J. Russell George, the Treasury Inspector General for Tax Administration.

This case is the product of an investigation by the Treasury Inspector General for Tax Administration and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Grant B. Rabenn is prosecuting the case.

If convicted, Valdez faces a maximum statutory penalty of three years in prison and a $100,000 fine. Any sentence, however, would 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.

The charges are only allegations, and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.



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