Humble Woman Pleads Guilty In Second Fraud Scheme
HOUSTON - Cheryl Reed Johnson aka Shawnee Reed and Cheryl Reed, 37, of Humble, has been convicted of engaging in a conspiracy to commit bank, mail and wire fraud as well as making false statements to a bank and wire fraud, announced U.S. Attorney Kenneth Magidson.
From approximately January 2005 through February 2014, Johnson illegally used various Social Security numbers not assigned to her by the Commissioner of Social Security. She would use those numbers in order to obtain loans from banks and other lending institutions to purchase houses and vehicles.
Johnson was also previously convicted in a second conspiracy related to tax fraud, including conspiracy to commit mail and wire fraud, conspiracy to make false claims to the Internal Revenue Service (IRS) and making a false claim to the IRS. In this scheme, Johnson and others claimed more than $2.2 million in false first time home buyer credits on 2008 returns they filed with the IRS. The fraudulent claims resulted in Johnson and her co-conspirators claiming more than $2.3 million in fraudulent refunds.
Johnson will be sentenced in both cases by U.S. District Judge Gray Miller on Aug. 7, 2015.
For the convictions today, she faces up to 30 years and a possible $1 million fine for conspiracy to commit bank, mail and wire fraud as well as the false statements conviction. For wire fraud, she also faces a possible maximum term of 20 years imprisonment and a possible $250,000 fine. In the second case, she will also face up to 20 years for the conspiracy to commit mail and wire fraud, another possible 10 years for the conspiracy to make false claims and up to five years for making the false claims.
She will remain in custody pending that hearing.
Both cases are the result of investigations conducted by the U.S. Postal Inspection Service and IRS - Criminal Investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the cases.