Legal Issues

Former IRS Employee Sentenced to Prison For Fraud Scam

Former IRS Employee Sentenced to Prison For Fraud Scam

A former IRS employee has been sentenced to four-and-a-half years in prison for a fraud scam. 

According to an official release, Deena Vang Lee, of Fresno, California, was ordered to pay $191,597 in restitution in addition to her sentence. Lee was convicted on multiple counts, including preparing and filing false tax returns for others, underreporting her own taxable income, and committing wire fraud and aggravated identity theft.

The convictions on 13 felony counts came on January 26, 2023, following a three-day jury trial. 

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Photographer: dowell/Getty Images

A breakdown of Lee's convictions can be found below:

- Three counts of wire fraud

- Two counts of aggravated identity theft

- Five counts of preparing and presenting false and fraudulent returns

- Three counts of making and subscribing a false and fraudulent tax return.

Per court evidence, between 2012 and 2016, Lee was working as a tax preparer. She knowingly reported "materially false information" to federal tax authorities on multiple clients' returns. Additionally, as part of her fraud and identity theft scheme, Lee obtained personal identification information for various individuals, listing them as child care providers on her customers' returns without their consent. 

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Credit: Getty Images

Furthermore, the ex-IRS staff member underreported her personal income for tax years 2013, 2014, and 2015.

Darren Lian, Special Agent in Charge with IRS Criminal Investigation's Oakland Field Office, spoke out about the sentence, saying, "IRS Criminal Investigation is sworn to protect the tax system, and that includes uprooting unscrupulous tax return preparers and bad actors from within the agency."

"The sentence handed down today shows the seriousness of the defendant's conduct and we will remain vigilant in identifying and investigating those who seek to defraud honest and hardworking American taxpayers," Lian continued.

J. Russell George, the Treasury Inspector General for Tax Administration, also commented on the verdict, "Taxpayers put trust in tax preparers to prepare their tax returns in accordance with the law. It is unacceptable for tax preparers to break this confidence by submitting fraudulent returns in their clients' names. The Treasury Inspector General for Tax Administration is committed to bringing to justice tax preparers who betray their clients' trust for their personal gain."

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Feature Image Credit: Chip Somodevilla/Getty Images

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