Milwaukee Woman Found Guilty of $200K in Tax Fraud

MILWAUKEE, WI — A Milwaukee woman accused of defrauding dozens of area residents out of tax refund money has been found guilty in federal court of defrauding dozens of residents out of tax return refund money.

According to the U.S. Department of Justice, a jury determined that Paula Forbes of Milwaukee filed at least 35 fraudulent tax returns seeking more than $200,000 in tax refund payments. Forbes and her co-conspirators shared in the proceeds of the fraudulently obtained tax refunds.

In addition, the jury also found Forbes guilty of filing fraudulent 2011 and 2012 income tax returns in her own name. In those returns, Forbes claimed inflated federal tax withholdings, which resulted in tax refunds of $13,341 and $3,528.

The jury convicted Forbes on each of the following 14 counts charged in the indictment: (1) one count of conspiring to defraud the United States by filing false tax refund claims, in violation of 18 United States Code Section 286 and (2) thirteen counts of filing false tax refund claims, in violation of 18 United States Code Section 287.

According to authorities, beginning in January 2012, Forbes engaged in a scheme with others to file false income tax returns that claimed refund payments from the Internal Revenue Service (IRS). Forbes and her co-conspirators gathered individuals’ social security numbers and other personal information.

Forbes then prepared federal income tax returns that fraudulently claimed wages and federal tax-withholding amounts from several employers, including Wisconsin Mortgage & Real Estate Resources and Midwest Accounting Tax Services, even though those employers had not actually paid wages or withheld taxes for the individuals. Forbes submitted the returns electronically to the IRS, signing the returns for individuals, many of whom she had never met.

As a result of these convictions, Forbes faces a maximum penalty of ten years in prison, a maximum fine of $250,000, and three years of supervised release. A sentencing date has not been set.

>>> image via patch.com file photo