Missouri Tax Fraud Aimed at $100 Million Payout

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A million dollars isn’t cool, you know what’s cool? A hundred million dollars. According to The Kansas City Star, that amount of money was apparently the target of a nationwide conspiracy to defraud the government that spanned eight states and was hubbed centered right in the middle of Kansas City. Its alleged ring-leader—a man who called himself ”Brother Jerry Love”—encouraged fraud filers to send him ”love donations,” allegedly maintained a website for the scheme called ”Luckytown,” and in a previous tax suit allegedly responded with a document entitled ”Ecclesiastical Deed Poll” that was signed with a fingerprint. He faces charges along with 13 other defendants in a 72-count indictment.

The plot was apparently structured like a legitimate tax return business, with ”offices” in various states and ”branch managers” who promised clients an opportunity to ”recoup” their debts by filing fake tax returns. All in all, the group attempted to obtain $96 million in refunds, though the IRS denied most of them, paying out only about $3.5 million.

It was an ambitious operation and points to the lengths that people will go to game the system. — and a free pass to Luckytown.

Source: Today’s ”Fraud of the Day” is based on an article entitled, ”14 Indicted in Massive Tax Refund Scam,” by Mark Morris published by The Kansas City Star, Sept. 23, 2011.

KANSAS CITY —

A three-year scheme that allegedly tried to defraud the Internal Revenue Service out of millions in inflated tax refunds unraveled Thursday in Kansas City as authorities announced charges against 14 defendants from around the country.

U.S. Attorney Beth Phillips described it as the largest false tax claims case ever prosecuted in Missouri.

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Larry Benson
Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.