Texas Jury Convicts Woman for $3 Million Tax Fraud

In October 2011, a federal jury in Texas convicted Delaware resident Lorna Moseti of defrauding the U.S. Treasury of over $3 million. Moseti was arrested in December 2010 and has been in custody ever since. After a three-day trial in the Northern District of Texas, the jury convicted Moseti on the sole count of the indictment. Moseti faces severe penalties for working with others to submit fraudulent returns to the Internal Revenue Service (IRS).

Charges

Prosecutors charged Moseti with one count of conspiring to commit mail and wire fraud. Prosecutors alleged Moseti and others conspired together to file fraudulent income tax return documents, using the identifying information of those incarcerated, in an effort to get income tax refunds. The group made false Forms W-2 Wage and Tax Statements for the returns they filed, complete with wage and withholding amounts. The group also falsified Schedule C (Profit or Loss From Business-Sole Proprietorship) forms to show that fictitious businesses loss money in order to offset claimed wages and resulted in a refund of the money that the IRS supposedly withheld in taxes.

The group electronically filed some of the returns, or requested that the IRS electronically deposit refund money into bank accounts. Once the group had the money in their accounts, they transferred it to different offshore accounts in Kenya, the Arab Emirates or Italy via mail or wire transfer. These acts allowed prosecutors to charge Moseti of conspiracy to commit mail and wire fraud.

Penalties

Moseti’s sentencing date is January 27, 2012. A conviction for conspiracy to commit mail and wire fraud could result in up to 20 years in federal prison, as well as a fine up to $250,000. A judge may order the defendant to pay restitution. Additionally, a person might face civil fines.

Consult an Attorney

Tax fraud charges are serious matters. The government devotes a great deal of resources to combating tax fraud, and authorities prosecute these cases to the fullest extent possible. If you are facing criminal tax charges, contact an experienced criminal defense attorney today.