$2.1 million tax refund? It's bogus. Scammer gets prison.

$2.1 million tax refund from Oregon was flagged by auditors but got processed anyway. Woman who received the $2.1 million tax refund gets 5-1/2 year prison sentence.

|
Randy L. Rasmussen/The Oregonian/Pool/AP/File
This July file photo shows Krystle Marie Reyes, the woman charged with defrauding the state and getting a $2.1 million tax refund, appearing in Marion County court, in Salem, Ore. Ms. Reyes was sentenced to 5-1/2 years of prison Tuesday.

A 25-year-old woman who duped the state of Oregon into giving her a $2.1 million tax refund pleaded guilty Tuesday and was sentenced to 5 1/2 years in prison.

Krystle Marie Reyes, of Salem, entered guilty pleas to one felony count of tax evasion and three counts of felony fraud. She had faced eight felony charges.

Reyes' court-appointed lawyer, Gale Rieder, said her client faced "overwhelming" evidence, The Oregonian reported.

Rieder said her client "wanted to take responsibility for what she'd done."

"She's remorseful and saddened by the impact on her family," the lawyer said. "She has no criminal history."

The woman received the refund on a debit card and spent about $150,000 before twice reporting the card lost or stolen. At that point the ruse was discovered. The state has recovered about $1.9 million of the money.

An Oregon Department of Revenue spokesman said Tuesday that the findings of an internal agency audit would be released Wednesday.

Reyes filed an electronic tax return in late January via Turbo Tax, erroneously reporting earnings of more than $3 million, authorities have said. Her request for a $2.1 million refund was initially red-flagged by an automated system.

The Oregonian quoted from a 24-page search warrant affidavit regarding what happened next.

The return was set aside for review by processing staff and managers for potential fraud. But "some time later," the affidavit said, a Revenue employee overrode the flagged payment and the refund was issued.

By policy, three agency employees are required to verify the override, the newspaper said. However, according to the affidavit, no one responsible for reviewing the return opened the file to look at it or looked at the W-2 form Reyes filed.

Reyes previously worked at retirement facilities or senior care homes and reported income of less than $15,000 per year in 2009 and 2010, records show.

Before her June 6 arrest, Reyes' spending spree included about $1,800 in cash to buy a 1999 Dodge Caravan and spending $851 on tires and wheels.

The affidavit says other purchases included a queen-sized air mattress, a deep fryer, an air conditioner and a cream and gray floral rug. She bought a sofa and recliner with brown leather trim.

Andrew Campbell, a senior assistant state attorney general who filed the charges against Reyes, declined to comment on Tuesday's plea deal.

You've read  of  free articles. Subscribe to continue.
Real news can be honest, hopeful, credible, constructive.
What is the Monitor difference? Tackling the tough headlines – with humanity. Listening to sources – with respect. Seeing the story that others are missing by reporting what so often gets overlooked: the values that connect us. That’s Monitor reporting – news that changes how you see the world.

Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

“Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.”

If you were to come up with a punchline to a joke about the Monitor, that would probably be it. We’re seen as being global, fair, insightful, and perhaps a bit too earnest. We’re the bran muffin of journalism.

But you know what? We change lives. And I’m going to argue that we change lives precisely because we force open that too-small box that most human beings think they live in.

The Monitor is a peculiar little publication that’s hard for the world to figure out. We’re run by a church, but we’re not only for church members and we’re not about converting people. We’re known as being fair even as the world becomes as polarized as at any time since the newspaper’s founding in 1908.

We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

If you’re looking for bran muffin journalism, you can subscribe to the Monitor for $15. You’ll get the Monitor Weekly magazine, the Monitor Daily email, and unlimited access to CSMonitor.com.

QR Code to $2.1 million tax refund? It's bogus. Scammer gets prison.
Read this article in
https://www.csmonitor.com/Business/Latest-News-Wires/2012/0726/2.1-million-tax-refund-It-s-bogus.-Scammer-gets-prison
QR Code to Subscription page
Start your subscription today
https://www.csmonitor.com/subscribe