A Maryland woman has pleaded guilty to participating in a tax refund fraud scheme that sought more than $1.1 million from the Internal Revenue Service (IRS). Federal authorities said the scheme involved filing false tax returns in the names of trusts and attempting to obtain refunds that were not legally owed.

According to court documents and statements made in court, Kendra Scarborough of Oxon Hill, Maryland, carried out the fraud between December 2019 and March 2020. The case resulted in a criminal charge for theft of government funds and a guilty plea in federal court.

• Three false tax returns were filed.
• The returns were submitted in the names of purported trusts.
• More than $1.1 million in refunds was requested.
• The IRS issued one refund worth about $412,000.
• The money was allegedly used for personal expenses, including a home mortgage.
• Kendra Scarborough pleaded guilty to theft of government funds.Romanian national pleads guilty in fraud scheme involving shell companies and fake identities

False Tax Returns Led to Fraudulent Refund Claims

Federal prosecutors stated that Kendra Scarborough filed three false tax returns connected to trusts she allegedly controlled. The returns were submitted over a period of several months and sought tax refunds totaling more than $1.1 million.

Authorities said the trusts were not entitled to the refunds claimed on the tax filings. Despite that, the submissions requested substantial payments from the federal government.

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