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Justice News

Department of Justice
U.S. Attorney’s Office
Middle District of Florida

Tuesday, April 22, 2014

North Port Couple Pleads Guilty To Filing A False Tax Refund Claim

Tampa, FL – United States Attorney A. Lee Bentley, III announces that North Port residents James Dee Jaeger (62) and Lora Anne Jaeger (50) each pleaded guilty yesterday to one count of filing a false claim for tax refund. Each faces a maximum penalty of 5 years in federal prison.

According to the plea agreement, on March 31, 2009, James Dee Jaeger and Lora Anne Jaeger electronically filed a joint federal income tax return with the IRS falsely claiming a refund in the amount of $344,672. The false refund amount was based on a bogus theory that the U.S. banking system maintains “Remic Trust” accounts for U.S. citizens and that taxpayers can gain access to the accounts by issuing 1099-OID forms to the IRS. Under this theory, the taxpayer first files a false Form 1099 Original Issue Discount (OID), to justify a false refund claim on a corresponding tax return. In this case, the IRS did not issue the fraudulent tax refund claimed by the Jaegers. 

This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Matthew J. Mueller and Trial Attorney Kevin C. Lombardi of the Department of Justice, Tax Division.

Updated January 26, 2015