United States Attorney Matthew D. Krueger announced that Karen Tompkins was recently sentenced in federal court in Milwaukee for defrauding and conspiring to defraud the United States by preparing and filing false tax returns. The tax returns fraudulently claimed tax refunds to which the filers were not entitled, in violation of Title 18, United States Code, Sections 2 and 371, and Title 26, United States Code, Section 7206(2).
United States District Judge Pamela Pepper sentenced Tompkins, of Milwaukee, to one year and one day in prison. Tompkins was also ordered to pay $384,528 in restitution.
According to the plea agreement, Tompkins and her coconspirators were employed as tax return preparers at a branch of Liberty Tax Services ("LTS") located at 3929 N. Humboldt Boulevard in Milwaukee, Wisconsin. As tax return preparers, the conspirators aided, assisted, counseled, and advised in the preparation and filing of federal income tax returns. Tompkins was the office manager of that branch, and she and her coconspirators artificially inflated tax filer’s claimed income, typically by inventing Schedule C business income for non-existent business, such as "hair braiding" or "dancing" businesses. They also claimed false W-2 income and Additional Child Tax Credits to which the filers were not entitled. This caused the IRS to pay out larger tax refunds than it otherwise would have. In return for these inflated tax refunds, Tompkins and her coconspirators received kickbacks
This case was investigated by the IRS Criminal Investigation division. The case was prosecuted by Assistant United States Attorney Benjamin Taibleson. #
Source: U.S. Department of Justice, Office of the United States Attorneys
