Waupun Resident Sentenced to Prison for Filing False Tax Returns

Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that Kimberly Bagneski (age 48) was sentenced in federal court in Milwaukee to 12 months and one day in prison, to be followed by three years of supervised release, and ordered to pay $84,129 in restitution to the IRS. 

Ms. Bagneski, who lives in Waupun, Wisconsin, previously pleaded guilty to filing false tax returns seeking fraudulent tax refunds.  According to court documents, Ms. Bagneski offered to prepare and file tax returns for people for free or for a nominal fee.  She then submitted returns seeking inflated tax refunds, typically by claiming fictitious business losses.   Generally, Bagneski directed the IRS to send the refund to her bank account and then paid the taxpayer a fraction of the money she received.   Bagneski also recruited her sister-in-law to assist her in filing the false returns in exchange for a portion of the fraudulent refund.  During the years 2010 through 2015, Bagneski and her sister-in-law prepared and filed 20 false federal income tax returns, as well as 19 false state tax returns.

This matter was investigated by the criminal investigation division of the Internal Revenue Service. The prosecution was handled by Assistant United States Attorney Matthew L. Jacobs.

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