Delaware Woman Sentenced on Fraud Charges

NORFOLK, Va. – Linda M. Avila, 50, of Frankford, DE, was sentenced today to 144 months in prison, followed by 3 years of supervised release for conspiring to obtain payment for false claims and mail fraud.

Dana J. Boente, United States Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigations; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.; made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.

Avila pled guilty on November 17, 2014.  According to court documents, Linda Avila and unindicted co-conspirators devised a scheme to file false income tax returns using forms obtained from illegal aliens on the Eastern Shore of Virginia and elsewhere.   Avila altered the W-2 forms by using white out to cover up the names, social security numbers, and addresses and then wrote in other names and addresses and filed the fraudulent returns.  According to court documents, she also created fake W-2 forms and notarized fake identity documents to facilitate her fraudulent filings.  The addresses listed on the forms were for post office boxes and residential addresses to which she or a co-conspirator had access.  Once the refund checks arrived, she provided fake identification documents to co-conspirators so they could cash the checks.   An arrest warrant and search warrant were executed at her home in Delaware and agents seized approximately 17 boxes of fraudulent tax records.  Templates for fraudulent W-2 forms and identification documents were also found on her computer.  The records included copies of approximately 1,754 tax returns filed between 2008 and 2014 for tax years 2004 through 2013.  The total loss to the IRS based on the fraudulent returns is approximately $7.2 million.

This case was investigated by the Internal Revenue Service and Homeland Security Investigations.  Assistant United States Attorney Randy Stoker is prosecuted the case on behalf of the United States.   

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-108.
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