Delaware Woman Pleads Guilty To $1.8 Million Tax Fraud Conspiracy
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Beverly Newton, age 52, of Middletown, Delaware, pled guilty today to violations of 18 USC § 286 (False Claims Conspiracy), 18 USC § 1341 (Mail Fraud), and 42 U.S.C. § 408(a)(7)(B) & 18 U.S.C. § 2 (Aiding and Abetting Social Security Fraud). Newton, who will be sentenced on January 14, 2014, by the Honorable Leonard P. Stark, United States District Judge for the District of Delaware, faces a maximum sentence of twenty years in prison, a fine of $250,000, and 3 years of supervised release.
According to statements made at the plea hearing and documents filed in court, the defendant participated in a tax fraud conspiracy involving the filing of more than 180 false individual federal income tax returns with the Internal Revenue Service, using stolen identities. The returns sought refunds of more than $1.8 million. The defendant and her co-conspirators received more than $800,000 on account of the fraudulent returns. The defendant’s role in the conspiracy involved providing names and social security numbers to another co-conspirator, who used the information to file the fraudulent returns. The defendant received more than $300,000 in refunds for her part in the scheme.
U.S. Attorney Oberly gave the following comments: “This case should send a clear signal that individuals who conspire with others to file false claims against the United States Treasury will face significant penalties. My office is committed to working with the Internal Revenue Service to prosecute these cases, and I will seek incarceration wherever possible and appropriate.”
“Investigating identity theft and refund fraud is a priority for IRS Criminal Investigation,” said Akeia Conner, IRS Special Agent in Charge, Philadelphia Field Office. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. Today’s plea signifies a surrendering to the resolve of IRS Criminal Investigation and the United States Attorney’s Office to combat and bring to justice those who dare to abuse our tax system and victimize our innocent taxpayers.”
This case is the result of an investigation conducted by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, and the Social Security Administration Office of the Inspector General. The case is being prosecuted by Assistant United States Attorney Lauren Paxton.