Earlier this week, a New York grand jury returned an indictment charging a New York woman with submitting fraudulent tax returns, impeding the IRS, and intentional failure to file tax returns. A New York woman was detained today following her arrest.
According to the indictment, Brooklyn resident Ehrenfriede Kauapirura filed a fraudulent 2015 amended tax return and a fraudulent 2016 tax return. On both tax forms, Kauapirura allegedly reported hundreds of thousands of dollars in fake tax withholdings, entitling her to nearly $250,000 in refunds per year. After purportedly concluding that Kauapirura’s claims were bogus, the IRS initiated a collection action to recover the refunds issued to Kauapirura. Kauapirura allegedly transferred funds from her personal bank account to a trust bank account she managed to circumvent IRS collection efforts. In addition, Kauapirura allegedly presented a $1 million cheque issued on a bank that did not exist as payment for her tax responsibilities. In addition, Kauapirura allegedly failed to timely file individual tax returns for the years 2017 through 2020 with the Internal Revenue Service.
Kauapirura faces up to three years in jail for each count of filing fraudulent tax returns, three years for impeding the IRS, and one year for each of four charges of willful refusal to file a tax return if convicted. After considering the U.S. Sentencing Guidelines and other statutory factors, a federal district court judge will impose any punishment.
The statement was made by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Tax Division of the Justice Department, U.S. Attorney Breon Peace for the Eastern District of New York, and Special Agent-in-Charge Tammy Tomlins Sarah of IRS-Criminal Investigation.
IRS Criminal Investigation is conducting an investigation.
Tax Division Trial Attorneys Michael C. Vasiliadis and Kenneth C. Vert are prosecuting the case.
All defendants are deemed innocent until their guilt is shown beyond a reasonable doubt in a court of law.