Tax Preparer Sentenced for $3 Million Fraud Scheme

News Summary

Jessica Crawford, a tax preparer, has been sentenced to eight years in federal prison for orchestrating a fraudulent scheme involving over $3 million in Pandemic Unemployment Assistance claims. Her actions have prompted a significant investigation into pandemic-related fraud and highlight the risks associated with exploiting government aid programs. The case serves as a warning to others in the industry as federal agencies continue to crack down on fraudulent activities during this time of crisis.

Athens, Georgia – Jessica Crawford, a 34-year-old tax preparer, has been sentenced to eight years in federal prison for orchestrating a fraudulent scheme involving more than $3 million in Pandemic Unemployment Assistance (PUA) claims. Her sentencing highlights a broader investigation into pandemic-era fraud and serves as a cautionary tale for others in the industry.

Crawford was found guilty of one count of wire fraud and one count of aiding in the preparation of false tax returns. During the investigation, it was revealed that she filed numerous false PUA claims using forged information and fictitious businesses. She not only profited from the fraudulent claims but also created improper tax credits, resulting in substantial financial losses to the government.

Investigative Findings

The Federal Bureau of Investigation (FBI) launched a probe into Crawford’s activities after uncovering text message exchanges between her and several clients, which indicated her involvement in fraudulent activities. The investigation escalated when an undercover agent from the Internal Revenue Service (IRS) met with Crawford in April 2022. During this meeting, she assisted the agent in establishing a bogus landscaping business, a tactic she used to file for fraudulent unemployment claims.

Crawford falsely reported a Schedule C loss of $19,373 for this fake business, ultimately claiming a refund exceeding $12,000. Additionally, she made illegitimate claims for child tax and earned income tax credits. The IRS’s review of her tax filings between 2020 and 2021 revealed that she submitted false credits in over 1,200 tax returns, further expanding the scope of her fraudulent enterprise.

Magnitude of Fraud

The total value of claims filed by Crawford exceeded $3 million. Such activities not only exploit federal assistance programs designed to help individuals during the pandemic but also harm legitimate taxpayers who rely on government support. The Assistant Special Agent in Charge of the IRS Criminal Investigation’s Atlanta Field Office stated that Crawford’s actions constituted a serious breach of trust, utilizing her position as a tax preparer to defraud the U.S. government through the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Context of Pandemic Fraud

This case is part of a larger initiative by federal law enforcement to address the rise in fraudulent claims related to unemployment assistance during the COVID-19 pandemic. The Department of Justice has been actively investigating multiple cases of PUA fraud, particularly noting that an alarming 35.9% of PUA funds were found to be associated with improper payments.

The Acting U.S. Attorney stated that Crawford’s case is indicative of a significant tax return scheme that manipulates pandemic relief measures, thereby undermining the integrity of federal assistance programs. The implications of such fraudulent activities echo widely, stressing the importance of vigilance among tax preparers and government agencies.

Conclusion

The sentencing of Jessica Crawford serves as a vital message to both tax preparers and individuals about the seriousness of fraud, particularly in times of crisis when many depend on government aid. As investigations into pandemic-related fraud continue, law enforcement agencies remain committed to holding accountable those who exploit the system for personal gain.

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