Wisconsin – Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that Kimberly Bagneski (age 48) of Waupun, Wisconsin, has entered a guilty plea in federal court to knowingly taking part in a scheme to defraud the United States by submitting false claims for income tax refunds to the IRS.
According to a written plea agreement, from approximately January 2011 through February 2016, assisted by a family member she had recruited, Bagneski prepared and filed false tax returns for third parties. In total, Bagneski assisted in the preparation and filing of at least 20 false federal income tax returns that sought more than $90,000 in fraudulent tax refunds. Bagneski also assisted in the preparation and filing of at least 19 false state income tax returns. All of the returns included a false Schedule C fraudulently reporting business income or losses, and many claimed inflated or completely fabricated deductions (medical expenses, home mortgage interest deductions, and charitable contributions) and tax credits (education tax credit, additional child tax credit, and earned income credit).
To obtain the fraudulent tax refunds, Bagneski instructed the IRS to send the refunds to a bank account she controlled or to split the refund between her account and an account controlled by the family member she recruited.
Bagneski faces up to five years in prison and fines of up to $250,000. She is scheduled to be sentenced on June 13, 2019.
This matter was investigated by the Internal Revenue Service Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Matthew Jacobs.
SOURCE: news provided by JUSTICE.GOV on February 14, 2019.