A Maryland woman was sentenced today to 12 months and one day in prison for attempting to steal more than $1.1 million from the IRS by filing false tax returns.
According to court documents and statements made in court, between December 2019 and March 2020, Kendra Scarborough, of Oxon Hill, filed three false tax returns in the names of purported trusts that she controlled. In total, these tax returns sought more than $1.1 million in refunds that the trusts were not entitled to receive. Scarborough’s scheme resulted in the IRS issuing a refund of $412,000 to one of the purported trusts. Scarborough used these funds to pay for, among other things, the mortgage on her personal residence and other creditors.
Scarborough pleaded guilty to one count of theft of government funds. In addition to the term of imprisonment, U.S. District Judge Debrorah L. Boardman ordered Scarborough to pay $410,117.44 in restitution to the IRS and forfeit to the government the proceeds from the tax refund that remain in her bank account.
IRS Criminal Investigation investigated the case.
Trial Attorney Melissa Siskind of the Fraud Division’s Tax Section prosecuted the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste and abuse within Federal benefit programs.