Woman pleads guilty in income tax refund scheme

Source: MGN Online
Source: MGN Online

CINCINNATI, OH (FOX19) - Latonya Broadnax, 43, of Cincinnati, Ohio, pleaded guilty to conspiracy to file false claims for federal income tax refunds with the Internal Revenue Service (IRS).

Broadnax faces a maximum of 10 years in prison and a fine of up to $250,000.

According to court documents, between February 2010 and February 2012, Broadnax conspired with others to defraud the IRS by obtaining false claims for federal income tax refunds in the amount of $89,615.

Broadnax recruited individuals in the Cincinnati, Ohio area.  Broadnax provided fraudulent Form W-2 information to her co-conspirators in order to maximize the income tax refunds for the recruited individuals, who were not entitled to receive any income tax refund.  Broadnax split the amount received from the fraudulent income tax refunds with the recruited individuals and with the other co-conspirators.  Broadnax received payments of up to $3,000.

For example, on one such income tax return, Broadnax assisted in the filing of a false claim for an income tax refund by obtaining the personal information of an individual and creating a false Form W-2, which resulted in a false claim for the Earned Income Tax Credit.  This individual did not work in the year in question and was not entitled to an income tax refund.  Broadnax split the income tax refund amount with this individual.

"Refunds are issued to taxpayers who are entitled to them," stated Denise Rocawich, Acting Special Agent in Charge, Criminal Investigation, Cincinnati Field Office.  "Criminal Investigation will continue to aggressively pursue those who prepare false claims for refunds for the purpose of enriching themselves and depleting the U.S. Treasury."

Sentencing is scheduled for July 9 at 10 a.m.

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