Former Bay Area Resident Agrees to Repay $180,452 as Restitution for Conspiracy and Filing a False Claim for Tax Refunds
SAN FRANCISCO – Cyrinthia Gary, aka Cyrinthia Adams, pleaded guilty yesterday to conspiring to file false tax returns, announced United States Attorney Melinda Haag and IRS-CI Special Agent in Charge José M. Martinez.
According to the plea agreement, beginning in June 2008, Gary, 41, of Sacramento, helped several people obtain tax refunds based on false tax returns that were filed with the IRS. As part of the scheme, Gary recruited others to provide their personal identifying information for use on the false tax returns. Gary knew the returns were false because the person whose name appeared on the tax returns did not supply the information used to support the refund. Furthermore, Gary used bank accounts of others whom she recruited for this purpose. When the fraudulent tax refunds were issued, the money would be withdrawn by the account holder and they would split the proceeds.
Gary also pleaded guilty to filing a false 2007 tax return in her own name on August 7, 2008. Gary admitted the tax return was false because it indicated that she received Social Security benefits in an amount that she knew was inflated. The return also stated that she had Form 1099 withholdings, which was not true.
As part of her plea agreement, Gary agreed to pay restitution in the amount of $180,452. The plea agreement further provides that Gary cannot prepare a tax return for anyone other than herself, and bars her from possessing other individuals’ identifying information without lawful authorization.
Gary, who was indicted on July 12, 2012, and was charged one count of conspiracy to file false claims and one count of filing a false claim, is scheduled for sentencing on November 20, 2013. She pleaded guilty to both counts in the indictment.
The maximum statutory penalty for each count of conspiracy to file false claim, in violation of Title 18, U.S.C § 286, is ten years in prison and a fine of $250,000. The maximum statutory penalty for each count of filing a false claim, in violation of Title 18, U.S.C § 287, is five years in prison and a fine of $250,000. However, any sentence will be imposed by the court only after consideration of the U.S. sentencing guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Thomas Newman is the Assistant U.S. Attorney who is prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.