Employee Fraud: Former SSA Employee Convicted of Identity Theft and Tax Fraud

Based on a referral by a tax preparation company, our Little Rock office investigated an SSA employee who worked part-time as a tax return preparer from 2005 through 2009. From January 2007 through June 2008, the employee accessed SSA systems to retrieve SSNs, and fraudulently used those SSNs as part of a tax fraud scheme.

The employee pled guilty to aiding and assisting in the preparation of false tax returns, aggravated identity theft, and misuse of an SSN. In November 2010, a U.S. District Court judge sentenced the SSA employee to 42 months of incarceration and three years of supervised probation, and ordered restitution of $85,507 to the IRS.

The SSA employee resigned in September 2009, after being notified of the allegation.Based on a referral by a tax preparation company, our Little Rock office investigated an SSA employee who worked part-time as a tax return preparer from 2005 through 2009. From January 2007 through June 2008, the employee accessed SSA systems to retrieve SSNs, and fraudulently used those SSNs as part of a tax fraud scheme.

The employee pled guilty to aiding and assisting in the preparation of false tax returns, aggravated identity theft, and misuse of an SSN. In November 2010, a U.S. District Court judge sentenced the SSA employee to 42 months of incarceration and three years of supervised probation, and ordered restitution of $85,507 to the IRS.

The SSA employee resigned in September 2009, after being notified of the allegation.