MEMPHIS RESIDENT SENTENCED IN TAX SCHEME
November 14, 2011
Memphis, Tenn.- Tranika Malone, 33, of Memphis, Tennessee, was sentenced by U.S. District Judge S.
Thomas Anderson to serve 12 months in prison, followed by two years of supervised release, announced
Edward L. Stanton III, United States Attorney for the Western District of Tennessee. Judge Anderson also
ordered Malone to pay restitution of $29,687.00 to the Internal Revenue Service (IRS). Malone pled guilty on August 11, 1011, to one count of conspiracy to defraud the United States and one count of filing a false claim.
According to the court documents, Malone conspired with Shakita Turner to operate a scheme to obtain
the payment of false claims for refunds from the IRS. Malone recruited unemployed individuals to file
false federal income tax returns using fictitious Forms W-2 that were prepared by Shakita Turner. Turner
prepared the fictitious Forms W-2 using false wage and withholding information for the nonexistent
employment. Malone then instructed, transported, and escorted the recruited individuals to a tax return
preparation office to have their federal income tax returns prepared and filed with the IRS. The returns all
claimed refunds that the individuals were not entitled to receive. As part of her plea agreement, Malone
agreed that the tax loss to the United States due to her actions was approximately $84,811.00. According
to the indictment, the recruited individuals agreed to pay Malone $1,000 to $1,500 of the fraudulent
refunds in exchange for the fictitious Forms W-2.
Turner was sentenced to eight months in prison for her role in the scheme earlier this year.
This investigation was conducted by IRS Criminal Investigation. Assistant United States Attorney Brian
K. Coleman represented the government.
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