Oct 26, 2012

Tax Preparers' Hall of Shame: Md. woman charged in fraudulent tax refund conspiracy




A 44-year-old  woman from Maryland has been charged with participating in a conspiracy that resulted in federal and local governments paying out more than $4 million in fraudulent tax refunds.

Kimberle Y. Davis was charged with aiding and abetting and first-degree theft. A plea hearing has been set for Oct. 31, according to court dockets.

The charges against Davis came in a “criminal information,” a document that can be filed only with the defendant’s consent and which signals that a plea deal has been reached. Her attorney declined comment.

Federal prosecutors alleged that Davis worked for a woman identified only as “S.D.” who ran a tax preparation service, 2FT Fast Facts Tax Service in the District. Davis helped “S.D.” file false federal returns in 2009 and 2010 that produced more than $3.7 million in fraudulent refunds, prosecutors said.

She also helped obtain more than $300,000 in fraudulent refunds from the District. At the time, authorities say, Davis used her full-time position in the D.C. Office of Tax and Revenue to access “DC OTR computer records concerning the audit status” of the tax business’ clients.

Davis is the second person to be charged in the scheme. Last year, another 2FT tax preparer pleaded guilty to federal charges of filing of more than 3,000 fraudulent income tax returns from 2006 through 2011 that netted more than $14 million in refunds.

Well Ms. Davis, welcome to the Tax Preparers' Hall of Shame. Thank you for giving tax preparers a bad reputation.

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