The Price is Wrong

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This 34-year-old fraudster was able to commit tax refund fraud and other types of fraud while in federal prison or on supervised release, according to a press release issued by the U.S. Attorney’s Office, Southern District of Ohio. According to court documents, this Buckeye State bilker filed false personal income tax returns, false personal amended income tax returns and false corporate income tax returns. Reportedly creating fictitious W-2 and 1099 forms, he claimed false tax refunds through fraudulent federal income tax withholdings. Better yet, he was already incarcerated during this time; while in prison, he mailed paper returns and while on supervised release (supervised?), he electronically filed the returns. (At least he stepped up his filing mechanism game.)

Three false forms claimed a total of $94,134 in bogus refunds, while the other three were false forms associated with his business, claiming $422,185 in false refunds. (But wait, there’s more…)

This individual didn’t stop with the feds, he also used personally identifiable information of other individuals in order to file false, fictitious and fraudulent unemployment insurance applications with the Ohio Department of Job and Family Services (ODJFS) for a total, according to the government, of $77,168. He listed seven individuals as employees with wages from the first quarter of 2014 through the first quarter of 2015. The kicker? Those seven individual ”employees” were all incarcerated before and during the aforementioned wage period. (So, this guy not only defrauded federal and state government programs, he also targeted his fellow inmates? C’mon down, you’re the next contestant on this guy’s fraud radar.)

Due to this individual’s actions, he received the ultimate ”Showcase Showdown”—he was charged with one count each of mail fraud and presenting false claims to the Internal Revenue Service and sentenced to 36 months in prison, three years of supervised release and was ordered to pay $90,297 in restitution to the IRS. (This could all be yours if the Price is Wrong.)

Source: Today’s ”Fraud of the Day” is based on, ”Columbus Man Sentenced for Filing False Tax Returns While in Federal Prison,” a press release issued by the U.S. Attorney’s Office, Southern District of Ohio on April 28, 2016.

Malek B. Aliane, 34, previously of Columbus, was sentenced in U.S. District Court on one count each of mail fraud and presenting false claims to the IRS. According to court documents, from 2013 through 2015, while in federal prison or on supervised release, Aliane filed six returns in total which claimed false tax refunds through fraudulent federal income tax withholdings. Aliane created fictitious W-2 and 1099 forms setting forth large federal tax withholding amounts.

In 2013 and 2014, while in prison, Aliane mailed paper returns to the IRS. In 2015, while on supervised release, he electronically filed the returns.

Aliane was sentenced to 36 months in prison, three years of supervised release, and was ordered to pay $90,297.26 in restitution to the IRS.

 

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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.