Two Milwuakee Women Sentenced to Prison for Filing Fraudulent Income Tax Returns
United States Attorney James L. Santelle, for the Eastern District of Wisconsin announced that two Milwaukee women have been sentenced to federal prison for their involvement in a scheme to submit numerous fraudulent income tax refund claims.
Roshunda Smith (age: 31) and Linda Fay Townsend (age: 46), both of Milwaukee, previously pleaded guilty to participating in a conspiracy that involved the submission of more than 170 fraudulent income tax returns seeking more than $1.5 million in federal income tax refunds.
The returns reflected false employment, income, dependents, tax withholdings, and estimated tax payment information. In addition, many of the returns also falsely claimed that the taxpayer was eligible for the First Time Home Buyer Credit. As a result of the scheme, the IRS paid out $450,000 in fraudulent income tax refunds.
Smith, who was the organizer of the scheme, was sentenced to 46 months in prison and ordered to pay restitution to the IRS totaling $450,000. Townsend, who had more limited involvement in the scheme, was sentenced to two years in prison and ordered to pay $70,000 in restitution.
This case was investigated by special agents from the Internal Revenue Service Criminal Investigation Division and was prosecuted by Assistant United States Attorney Matthew L. Jacobs.
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