James C. Brewer, an IRS Revenue Officer from Staten Island, New York (worked in Edison, NJ IRS office) falsified his personal income tax returns and failed to account for money he received from outside businesses he operated. In September, 2016 he plead guilty to 12 count each of wire fraud and filing or preparing false tax returns, one count of mail fraud and one count of committing perjury.
Brewer ran two side businesses: he prepared tax returns for cash payments received (contrary to IRS regulations) and sold items on eBay (designer clothes, toys, sports memorabilia). He reduced his taxable income and increased his personal tax refunds by failing to report fees from his tax preparation business, under-reported his receipts from his internet retail business, and claimed false dependents on his federal tax returns. On his clients’ tax returns he listed false dependents and false deductions. He diverted client refunds to himself.
In 2012, he lied under oath in US Tax Court about his residency in an attempt to fraudulently obtain a tax credit for first time homebuyers.
He is to be sentenced in 2017 and faces up to 20 years in jail on each wire fraud and mail fraud count, up to 3 years on each tax fraud count, and up to 5 years on the perjury counts. He must pay more than $70k in restitution to the IRS, plus interest, penalties and fines.
Alena Aleykina, a certified public accountant and former IRS-Criminal Investigation Agent was indicted by a federal grand jury in Sacramento in October 2016 on 9 fraud charges. She is accused of claiming false filing statutes, dependents, and deductions and losses on her personal income tax returns for 2009, 2010, 2011. Allegations in the indictment include that she prepared false tax returns for herself, family members and on behalf of trusts between 2008-2013. She is accused of making false statements to representatives from the Dept. of Treasury, and attempting to obstruct a federal investigation by destroying evidence on a government computer. She is charged with fraudulently causing the IRS to issue IRS Tuition Assistance Reimbursement payments to her.
Together, Aleykina faces 6 counts of filing false income tax returns, one count of corruptly endeavoring to obstruct the internal revenue laws, one count of theft of government money and one count of destroying records during a federal investigation.
If convicted on all charges, Aleykina could spend up to 41 years in prison which include: statutory maximum 3 years for each count of filing a false tax return and corruptly endeavoring to obstruct the internal revenue laws, 10 years in prison for theft of government money and 20 years in prison for destruction of evidence.