10 Former IRS Employees Sentenced in Kansas City for Theft of Government Property
Friday, March 1st, 2019 @ 5:26PM
CFEG reports that ten former Internal Revenue Service (IRS) employees were sentenced in a federal district court in the Western District of Missouri between January 26, 2015, and January 28, 2015, for the theft of Government property stemming from unemployment benefits fraud. https://www.treasury.gov/tigta/oi_highlights_2015.shtml
The 10 former IRS employees, were indicted on December 10, 2013, for theft of Government property and bank fraud related to an unemployment benefits scheme. https://www.treasury.gov/tigta/oi_highlights_2015.shtml
According to the court documents, the Missouri Division of Employment Security (MODES) administered unemployment benefits in Missouri on behalf of the Federal Government, and the approved benefit funds for the individuals were then transferred to Central Bank. Between January 2008 and February 2013, the IRS employees knowingly and willfully stole money belonging to the United States and executed a scheme to defraud Central Bank by fraudulently obtaining unemployment benefits. https://www.treasury.gov/tigta/oi_highlights_2015.shtml
The individuals were required to certify weekly, via the Internet or telephone, any work and earnings in order for MODES to determine the validity of continued benefits. All 10 of the defendants were employed at the IRS while claiming unemployment benefits through MODES, resulting in the fraudulent payment of benefits in amounts ranging from $6,127 to $21,348, with an aggregate total of $112,609. The false representations in connection with their weekly unemployment claims were further extended to obtain debit cards and/or financial deposits and negotiable instruments with funds transferred from MODES to Central Bank. https://www.treasury.gov/tigta/oi_highlights_2015.shtml
The IRS employees pled guilty to theft of government property i.e., Extended Unemployment Compensation Account and American Recovery and Reinvestment benefits. Nine of the 10 individuals were sentenced to five years of Federal probation; the tenth received three years of probation. All were ordered to pay restitution, which totaled over $100,000. https://www.treasury.gov/tigta/oi_highlights_2015.shtml
When IRS employees steal Government property the IRS fails in its mission to apply the tax law with integrity and fairness to all.