Woman Sentenced to 5 Years in Federal Prison for Participating in IRS Impersonation Scam

John H. Durham, United States Attorney for the District of Connecticut, announced that NANCY J. FRYE, 51, of Bristol, was sentenced by U.S. District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment, followed by three years of supervised release, for her involvement in an IRS impersonation scam that defrauded hundreds of victims in the United States and Canada.

An IRS impersonation scam is operated by individuals who falsely represent themselves as employees of the IRS to obtain money from victims.  Typically, those executing the fraudulent scheme make unsolicited telephone calls to people and tell them that they are IRS agents or officers calling on behalf of the IRS.  During the calls, the impersonator tells the call recipient that the recipient has an outstanding debt with the IRS that must be paid immediately.  The impersonator then threatens persons with either arrest or a lawsuit if they do not immediately settle the bogus IRS debt.  Victims are instructed to wire money to individuals they believe are employees of the IRS in order to avoid the threatened action.

According to court documents and statements made in court, in October 2015, FRYE received phone calls and text messages from individuals who successfully recruited her to pick up money that was wired through MoneyGram and Western Union and to deposit the money into specific bank accounts.  FRYE, in turn, recruited Douglas Martin and others to assist her in picking up wired funds from locations in central Connecticut.  FRYE then deposited the money that she collected into the bank accounts.

Between October 2015 and June 2016, FRYE, and others working at her direction, received approximately $588,000 in wired funds from approximately 574 victims.Judge Bryant ordered FRYE to pay restitution in the amount of $585,321.

FRYE and Martin were arrested on September 15, 2016.

On June 12, 2017, FRYE pleaded guilty to one count of conspiracy to commit wire fraud.

Martin pleaded guilty to the same charge and, on November 2, 2017, was sentenced to 41 months of imprisonment.

Judge Bryant ordered FRYE, who is released on bond, to report to prison on January 8, 2018.

Since October 2013, TIGTA has received reports of more than 2.1 million impersonation related calls with more than 12,400 victims reporting losses of approximately $62 million.

This matter is being investigated by the Treasury Inspector General for Tax Administration (TIGTA) of the U.S. Department of the Treasury and U.S. Postal Inspection Service.  The U.S. Attorney gratefully acknowledges the assistance provided by the Rocky Hill Police Department, Bristol Police Department, and New York State Department of Taxation and Finance.

Are You in Trouble with the IRS or State? To schedule a free, legally privileged consultation with a Federal Tax Practitioner and Attorney in our conveniently located New York City office call (212) 974-3435 or contact us online. *Same day and emergency appointments are available Monday through Friday. 

✔  Unpaid income, sales and payroll taxes. 

✔   We negotiate excellent re-payment plans with the IRS and State.

✔   Missing tax returns prepared and filed within 48 hours, guaranteed. 

✔  Suspended passport / suspended drivers’ license.

✔  Civil and criminal tax representation.

✔  Income and sales tax audit. 

✔  Department of Labor.

✔  Workers Compensation.

Does Your Business Need Money for Taxes and Expenses? We provide excellent debt settlement options, including business and insurance financing, merchant funding, lines of credit and factoring. For a free consultation call (212) 974-3435 or contact us online. *Same day and emergency appointments are available Monday through Friday. 

✔   Fast approval.  

✔   Flexible re-payment schedule.

✔   No collateral requirements.

✔  No restrictions (pay taxes or use the funds as needed).

✔  No UCC-1 requirement. 

EDIBLE ARRANGEMENTS FRANCHISE OWNER PLEADS GUILTY TO BILKING CITY AND STATE OUT OF MORE THAN $185,000 IN TAXES Defendant To Make Full Restitution Including Penalties And Interest

Queens District Attorney Richard A. Brown, joined by New York State Department of Taxation and Finance Commissioner Thomas H. Mattox, announced that on THURSDAY, JANUARY 8, 2015 a Queens man who owns an Edible Arrangements franchise in Springfield Gardens, Queens, has pleaded guilty to violations of the New York State Tax Code for failing to pay more than $185,000 in taxes due to both New York City and New York State. 

District Attorney Brown said, “Sales taxes are meant for the public treasury - not to line the pockets of businessmen. The defendant showed a callous disregard for the tax laws. He stole from his customers as well as from the State of New York and the City by under reporting his business’ earnings. The defendant has now admitted his guilt and will be sentenced accordingly.” 

Commissioner Mattox said, “The defendant admitted to willfully stealing tax dollars paid by customers, a crime that can’t be tolerated. We will continue to work with District Attorney Brown and other law enforcement partners to prosecute those who attempt to evade paying their fair share of taxes.” 

District Attorney Brown identified the defendant as Maurice Letman, 42, of Springfield Gardens, Queens. The defendant is the owner of MSM Arrangements that operates as an Edible Arrangements franchise at 133-23 Springfield Boulevard in Queens. The business sells fruit baskets and fruit bouquets. Letman pleaded guilty to violations of sections 1804 and 1802 of the New York State Tax Code and corporate defendant MSM Arrangements pleaded guilty to a violation of section 1804 of the Tax Code and criminal tax fraud in the third degree before Acting Queens Supreme Court Justice Suzanne Melendez. The business will receive a conditional discharge. Defendant Letman will be sentenced on March 2, 2015. 

District Attorney Brown said that the defendant’s business collected in excess of $2 million between 2007 and 2011, but failed to pay more than $100,000 in taxes owed. Between 2011 and 2013, the defendant’s business collected just over $1.2 million yet the defendant claimed in required filings to have only taken in about $26,000 - cheating the city and state coffers of another $50,000. 

The District Attorney said that the defendant has repaid over $90,000 and must still pay another $97,537. The total restitution is $188,448. As a condition of the plea agreement, the defendant signed an agreement with the New York State Department of Taxation to pay penalties and interest in excess of $200,000. 

The investigation was conducted by Forensic Tax Auditor Harry Marc-Charles of the New York State Department of Taxation and Finance under the supervision of Chunyip Tsui, the section head of Criminal Investigations Division. 

Are You in Trouble with the IRS or State? To schedule a free, legally privileged consultation with a Federal Tax Practitioner and Attorney in our conveniently located New York City office call (212) 974-3435 or contact us online. *Same day and emergency appointments are available Monday through Friday. 

✔  Unpaid income, sales and payroll taxes. 

✔   We negotiate excellent re-payment plans with the IRS and State.

✔   Missing tax returns prepared and filed within 48 hours, guaranteed. 

✔  Suspended passport / suspended drivers’ license.

✔  Civil and criminal tax representation.

✔  Income and sales tax audit. 

✔  Department of Labor.

✔  Workers Compensation.

Does Your Business Need Money for Taxes and Expenses? We provide excellent debt settlement options, including business and insurance financing, merchant funding, lines of credit and factoring. For a free consultation call (212) 974-3435 or contact us online. *Same day and emergency appointments are available Monday through Friday. 

✔   Fast approval.  

✔   Flexible re-payment schedule.

✔   No collateral requirements.

✔  No restrictions (pay taxes or use the funds as needed).

✔  No UCC-1 requirement. 

New York State is Cracking Down on Tax Evaders and Welfare Cheats

District Attorneys in 29 Counties Awarded Grant Funding Through the State's "Crimes Against Revenue Program"

Governor Andrew M. Cuomo today announced more than $13.5 million in grants has been awarded to 29 district attorneys' offices statewide to continue the enhancement of their investigation of state tax evasion and welfare fraud cases. The grants are made available through the state's Crimes Against Revenue Program, which is supported by proceeds from investigations and subsequent prosecutions that result in tax revenues, fines and restitution being paid to the state.

"New York State has zero tolerance for theft of any kind from hardworking men and women and we will continue to do everything in our power to crack down on those who cheat the system," Governor Cuomo said. "This funding will assist prosecutors across the state protect New Yorkers and hold responsible individuals accountable."

CARP, a joint initiative of the State Department of Taxation and Finance and the Division of Criminal Justice Services, targets individuals who deliberately fail to pay tax obligations, as well as those who commit Medicaid, welfare, unemployment and workers' compensation fraud. The Department of Tax and Finance serves as the program expert by providing technical assistance and helping to identify cases for investigation while the Division of Criminal Justice Services administers the grant funding.

The grants fund personnel, including forensic accountants, investigators and assistant district attorneys, who work to build cases for prosecution. CARP investigations focus on the failure to pay any type of taxes, such as excise, sales, and income, by individuals, corporations or industries which can include complex financial fraud and tax evasion schemes orchestrated by major criminal enterprises.

Division of Criminal Justice Services Executive Deputy Commissioner Michael C. Green said, "Since it was established in 2004, CARP has continued to provide district attorneys across the state with the funding necessary to help them investigate and prosecute these often complex and specialized cases. We are proud to be a part of these collaborative efforts to identify and prosecute these individuals who are looking to cheat the system and honest taxpayers of New York State."

Department of Taxation and Finance Acting Commissioner Nonie Manion said, "CARP puts more muscle into our criminal investigations, helping us strengthen the productive partnerships we've built with local law enforcement organizations. It's an important element in the agency's vigilant and continuous effort to bring tax cheats to justice."

The 29 county district attorneys' offices receiving grants announced today have been funded through the Crimes Against Revenue Program since 2016. While only those offices were eligible to apply for funding, they were not guaranteed the same amount they had previously received. The grants align with the calendar year ending in December 2019 with optional renewals for up to two additional years.

New York City 

·      Bronx: $692,300

·      Kings (Brooklyn): $802,600

·      New York (Manhattan): $5,000,000

·      Queens: $1,491,400

·      Richmond (Staten Island): $256,210

Long Island

·      Nassau County: $633,399

·      Suffolk: $1,605,500

Mid-Hudson

·      Orange: $112,810

·      Rockland: $357,600

·      Ulster: $143,600

·      Westchester: $278,100

Capital Region

·      Albany: $299,710

·      Rensselaer: $102,800

·      Saratoga $118,900

·      Schenectady: $130,000

·      Warren: $59,600

·      Washington: $36,200

Mohawk Valley

·      Montgomery: $28,600

·      Oneida: $160,878

Central New York

·      Cayuga: $80,000

·      Madison: $67,000

·      Onondaga: $111,110

Southern Tier

·      Chemung: $64,170

·      Steuben: $40,400

Finger Lakes

·      Ontario: $92,100

·      Monroe: $208,000

Western New York

·      Chautauqua: $65,000

·      Erie: $414,100

·      Niagara: $68,810

The New York State Division of Criminal Justice Services (www.criminaljustice.ny.gov) has a variety of responsibilities, including law enforcement training; collection and analysis of statewide crime data; maintenance of criminal history information and fingerprint files; administrative oversight of the state's DNA databank, in partnership with the New York State Police; funding and oversight of probation and community correction programs; administration of federal and state criminal justice funds; support of criminal justice-related agencies across the state; and administration of the state's Sex Offender Registry.

The New York State Department of Taxation and Finance (www.tax.ny.gov) annually processes 25 million tax returns and collects more than $90 billion in annual state and local revenue.

Are You in Trouble with the IRS and State? To schedule a free, legally privileged consultation with a Federal Tax Practitioner and Attorney in our conveniently located New York City office, call (212) 974-3435 or contact us online. *Same day and emergency appointments are available Monday through Friday. 

✔  Unpaid income, sales and payroll taxes. 

✔  We negotiate excellent re-payment plans with the IRS and State.

✔  Missing tax returns prepared and filed within 48 hours, guaranteed. 

✔  Suspended passport / suspended drivers’ license.

✔  Civil and criminal tax representation. 

✔  Income and sales tax audit. 

✔  Department of Labor.

✔  Workers Compensation.

Does Your Business Need Money For Taxes and Expenses? Our affiliates provide excellent insurance and debt settlement options, including business and insurance financing, merchant funding, lines of credit and factoring. Call (212) 974-3435 for a free consultation.  

"Tax experts say there is nothing to be intimidated about"

Tax experts say there is nothing to be intimidated by when filing your taxes this year, despite some changes to tax laws that went into effect at the start of the new year.

One difference will be how your 1040 tax form will look. It will now be condensed to the size of a postcard. However, it will still have six pages of information you must fill out.

This year, there is also an increase to standard deductions. For married couples who file jointly, the deduction amount is now $24,000. For those who are single or married but filing separately, its $12,000.

"The Heritage Foundation estimated that 86 percent of people will now take the standard deduction. What that means is those people prior to the changes would get to deduct interest on their house, real estate taxes and state income taxes paid," says Kendall Roberts, a certified public accountant based out of Clive.

Roberts adds that new tax laws could impact those who work from home too. The reimbursed employee expenses section on the federal tax return was removed.

"That section was eliminated all together. That impacts a lot of people that had expenses associated with their company's work and now they can't deduct it," says Roberts.

Are You in Trouble with the IRS and State? To schedule a free, legally privileged consultation with a Federal Tax Practitioner and Attorney in our conveniently located New York City office, call (212) 974-3435 or contact us online. *Same day and emergency appointments are available Monday through Friday. 

✔ Unpaid income, sales and payroll taxes. 

✔ We negotiate excellent re-payment plans with the IRS and State.

✔ Missing tax returns prepared and filed within 48 hours, guaranteed. 

✔ Suspended passport / suspended drivers’ license.

✔ Civil and criminal tax representation. 

✔ Income and sales tax audit. 

✔ Department of Labor.

✔ Workers Compensation.

Does Your Business Need Money For Taxes and Expenses? Our affiliates provide excellent insurance and debt settlement options, including business and insurance financing, merchant funding, lines of credit and factoring. Call (212) 974-3435 for a free consultation.