St. Paul Woman Pleads Guilty To Filing Over $200,000 In False Tax Returns
United States Attorney Andrew M. Luger today announced the guilty plea of CINDY LEE LINEBAUGH, 48, to one count of False, Fictitious and Fraudulent Claims. LINEBAUGH was indicted on September 24, 2014, and pleaded guilty on February 24, 2015, before U.S. District Judge Susan Richard Nelson in St. Paul, Minn.
According to the defendant’s guilty plea, in February 2010, LINEBAUGH began a tax fraud scheme in which she knowingly prepared and filed false tax returns on behalf of herself and others. LINEBAUGH used fraudulent W-2s which falsely claimed that the individuals were employed by and earned wages from employers such as Northwest Airlines and the City of St. Paul.
According to court documents, during calendar years 2010 and 2011, LINEBAUGH prepared and filed approximately 73 false returns for tax years 2009 and 2010 using online tax- preparation software. The refunds were loaded onto a debit card and sent by the IRS directly to the individuals. LINEBAUGH charged individuals anywhere from $100 to $300 for her tax- preparation services. The total amount of the tax loss for all returns was approximately $287,561.
This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division.
This case is being prosecuted by Assistant U.S. Attorney John E. Kokkinen.
CINDY LEE LINEBAUGH, 48
St. Paul, Minn.
• False, Fictitious and Fraudulent Claims, 1 count