Department of Justice
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ALLEN, TEXAS WOMAN GUILTY OF TAX FRAUD
BEAUMONT, Texas – A 48-year-old Allen, Texas woman has pleaded guilty to tax fraud in the Eastern District of Texas announced U.S. Attorney John M. Bales today.
Cynthia Watts Riggins pleaded guilty to filing a false tax return for the calendar year 2005 today before U.S. District Judge Ron Clark.
According to information presented in court, from 1998 to 2008, Riggins, who was employed as the Office Manager for McLean Orthopedics in Nacogdoches, Texas, embezzled more than $1 million from her employer. Riggins failed to report the embezzled funds as taxable income. Riggins was indicted by a federal grand jury on Dec. 15, 2010 and charged with federal income tax violations.
Riggins faces up to three years in federal prison, a fine of up to $100,000, and restitution to the victims, which includes over $200,000 to the Internal Revenue Service and over $1 million to McLean Orthopedics. A sentencing date has not been set.
This case is being investigated by the Criminal Investigations Division, Internal Revenue Service, the U.S. Postal Inspector, and the Nacogdoches Police Department and prosecuted by Assistant U.S. Attorney James E. Peacock.