Denver Woman Sentenced to Federal Prison for Conspiracy to Defraud the IRS
DENVER – Sherry Charleston, age 41, of Denver, Colorado was recently sentenced by Chief U.S. District Court Judge Marcia S. Krieger to serve 18 months in prison followed by 3 years of supervised release for conspiracy to defraud the Internal Revenue Service, announced the United States Attorney’s Office, IRS Criminal Investigation and Social Security Administration Office of Inspection General. Charleston was also ordered to pay $16,541 in restitution to the IRS.
Jaquon Mucsarney and co-conspirator, Sherry Charleston were indicted by a Federal Grand Jury in Denver on January 7, 2016 for mail fraud, conspiring to defraud the government, false claims, aggravated identity theft and obstruction of justice. Jaquon's mother, Schosche Mucsarney, who was indicted on similar charges, pled guilty and was sentendced on November 22, 2016. Charges against Jaquon Mucsarney are still pending.
According to the indictment and plea agreement, from January 14, 2015 and continuing through October 27, 2015, Charleston assisted Jaquon in a scheme to defraud the Internal Revenue Service by attempting to cause tax refund checks to be issued from the United States Treasury based on false information provided in tax returns filed with the IRS. Charleston aided Jaquon in a variety of ways during the scheme including helping in the creation of fictitious companies and the issuance of Employment Identification Numbers (“EINs”), assisting in the filing of false corporate income tax returns, and assisting in the receipt, collection and disbursement of impermissibly obtained IRS refunds.
As part of the scheme, Charleston opened a business bank account in the name of one of the shell companies she created and deposited IRS refund checks into the account. She typically directed some of the refund money to Jaquon’s inmate account at the prison where he was incarcerated on state charges. Jaquon, with Charleston’s assistance, caused approximately 13 tax returns to be filed with the IRS containing false information in order to claim refunds totaling $119,934.
To further obstruct and impede the IRS, on February 12, 2015, Charleston provided false and misleading information to an IRS Special Agent investigating Jaquon’s activities. Additionally on June 22, 2015, Charleston, on Jaquon’s advice and counsel, intentionally failed to appear for testimony before a Federal Grand Jury.
This case was investigated by the Internal Revenue Service – Criminal Investigation and Social Security Administration – Office of Inspection General. This case was prosecuted by Assistant United States Attorney Tim Neff.