A Maryland woman admitted in federal court yesterday that she tried to scam the IRS out of more than $1.1 million by using fake trusts to secure massive, fraudulent tax refunds.
Kendra Scarborough, of Oxon Hill, Maryland, officially pleaded guilty to one count of theft of government funds. According to prosecutors and court documents, the scheme took place over a brief four-month window between December 2019 and March 2020. During this time, Scarborough filed three separate, fraudulent tax returns under the names of purported trusts that she controlled.
While her total filings demanded over $1.1 million in unearned refunds, the IRS actually ended up paying out $412,000 to one of the fake accounts before the fraud was uncovered. Federal investigators revealed that Scarborough quickly spent the stolen government money on personal expenses, including paying off the mortgage on her own home.
Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division announced the plea. The case was investigated by IRS Criminal Investigation, and Trial Attorney Melissa Siskind of the Criminal Division’s Tax Section is handling the prosecution…