{"id":55828,"date":"2024-03-19T17:31:40","date_gmt":"2024-03-20T00:31:40","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=55828"},"modified":"2024-03-19T17:31:40","modified_gmt":"2024-03-20T00:31:40","slug":"tax-preparer-sentenced-to-10-years-in-prison-for-swindling-irs-and-states-out-of-millions-of-dollars","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=55828","title":{"rendered":"Tax Preparer Sentenced to 10 Years in Prison for Swindling IRS and States Out of Millions of Dollars"},"content":{"rendered":"<p class=\"yiv9483789617MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0SANTA ANA, California<\/strong>\u00a0<\/span><\/p>\n<p class=\"yiv9483789617MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"> <img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-1381 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/03\/irs2-300x244.jpg\" alt=\"\" width=\"300\" height=\"244\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/03\/irs2-300x244.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/03\/irs2.jpg 443w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>A former Orange County tax preparer was sentenced Monday to 10 years in federal prison for leading multi-year tax fraud conspiracies across three countries, officials stated.<\/span><\/p>\n<p class=\"yiv9483789617MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">The fraud conspiracy claimed more than $10 million from the IRS and dozens of state tax authorities in fraudulent tax refunds and led these authorities to lose more than $1.2 million.<\/span><\/p>\n<p class=\"yiv9483789617MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Stephen Jake McGonigle, 67, of Victorville, was sentenced by United States District Judge James V. Selna. The judge also ordered him to pay $1.2 million in restitution. <\/span><\/p>\n<p class=\"yiv9483789617MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">In addition, Judge Selna ordered that the $300,000 McGonigle previously paid to be free on bond, in this case, be applied to the restitution order.<\/span><\/p>\n<p class=\"yiv9483789617MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-2782 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/04\/IRS-Criminal-Investigation.-300x187.jpg\" alt=\"\" width=\"300\" height=\"187\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/04\/IRS-Criminal-Investigation.-300x187.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/04\/IRS-Criminal-Investigation.-120x76.jpg 120w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/04\/IRS-Criminal-Investigation.-308x192.jpg 308w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/04\/IRS-Criminal-Investigation..jpg 350w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/> After an eight-day trial, a jury in November 2023 found McGonigle guilty of conspiracy to defraud the IRS, one count of conspiracy to commit wire fraud, and one count of aggravated identity theft.<\/span><\/p>\n<p class=\"yiv9483789617MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 McGonigle recruited others to help convince the IRS and dozens of state governments to issue millions of dollars in fraudulent tax refunds.<\/span><\/p>\n<p class=\"yiv9483789617MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To perpetrate the massive fraud that began in 2013 and lasted until McGonigle\u2019s arrest in 2019, McGonigle sent one co-conspirator to Thailand to obtain fake identification documents that used stolen victim identities, and then he directed other co-conspirators to use those fake identifications to obtain prepaid debit cards, as well as numerous commercial mailboxes across Orange County and elsewhere.<\/span><\/p>\n<p class=\"yiv9483789617MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-5414 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/08\/U.S.-Department-of-Homeland-Security-300x184.jpg\" alt=\"\" width=\"300\" height=\"184\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/08\/U.S.-Department-of-Homeland-Security-300x184.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/08\/U.S.-Department-of-Homeland-Security.jpg 584w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>After sending the prepaid debit cards to these untraceable mailboxes, McGonigle and his co-conspirators filed fraudulent tax returns using the identity theft victims\u2019 Social Security numbers. <\/span><\/p>\n<p class=\"yiv9483789617MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Those fraudulent tax returns sought millions of dollars in tax refunds to be deposited into these prepaid debit cards or other bank accounts that they controlled.<\/span><\/p>\n<p class=\"yiv9483789617MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 With over a decade of tax preparation experience in Southern California, McGonigle used his knowledge to lead the fraud scheme. <\/span><\/p>\n<p class=\"yiv9483789617MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">The IP addresses used to file the fraudulent returns were traced back to various cities in Southern California, including McGonigle\u2019s home in Fallbrook and various office spaces leased by McGonigle in Lake Forest, Costa Mesa, Fountain Valley, and Carlsbad. <\/span><\/p>\n<p class=\"yiv9483789617MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-15087 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/08\/U.S.-Postal-Inspection-Service-300x300.png\" alt=\"\" width=\"300\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/08\/U.S.-Postal-Inspection-Service-300x300.png 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/08\/U.S.-Postal-Inspection-Service-150x150.png 150w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/08\/U.S.-Postal-Inspection-Service.png 477w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Some IP addresses were traced back to Costa Rica, where law enforcement surveillance and travel records confirmed that McGonigle and his co-conspirators opened an office and hired employees to help file additional fraudulent returns.<\/span><\/p>\n<p class=\"yiv9483789617MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 McGonigle\u2019s scheme fraudulently sought more than $10 million from federal and state tax authorities and caused an actual loss of $1,230,175. <\/span><\/p>\n<p class=\"yiv9483789617MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Prosecutors have secured guilty pleas from two co-defendants, who are also scheduled to be sentenced in the coming months.<\/span><\/p>\n<p class=\"yiv9483789617MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 IRS Criminal Investigation, Homeland Security Investigations, and the United States Postal Inspection Service investigated this matter. <\/span><\/p>\n<p class=\"yiv9483789617MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Assistant U.S. Attorneys Sue Bai of the Terrorism and Export Crimes Section and Colin Scott of the General Crimes Section prosecuted this case.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0SANTA ANA, California\u00a0 A former Orange County tax preparer was sentenced Monday to 10 years in federal prison for leading multi-year tax fraud conspiracies across three countries, officials stated. The fraud conspiracy&#8230;<\/p>\n","protected":false},"author":1,"featured_media":2717,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3255,48],"tags":[],"class_list":["post-55828","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-federal-court","category-irs"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Tax Preparer Sentenced to 10 Years in Prison for Swindling IRS and States Out of Millions of Dollars<\/title>\n<meta name=\"description\" content=\"\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0SANTA ANA, California\u00a0 A former Orange County tax preparer was sentenced Monday to 10 years in federal prison for leading multi-year tax fraud\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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