Woman Cheats TaxPayers For $2.1 Million Tax Refund

Reports have come out about how illegal immigrants have been taking advantage of taxpayers via the IRS by claiming child tax credits that they do not have amassing tens of thousands of dollars they are not entitled to. Now a woman from Salem, Oregon has committed one of the biggest tax frauds in state history and taken the taxpayers for more than $2 million.

According to a probable cause affidavit, Krystle Marie Reyes was arrested and placed in the Marion County Jail on charges of computer crime and aggravated theft. The state accepted her return and authorized her refund which was given by Turbo Tax in the form of a Visa debit card filled with $2.1 million.

So how was Reyes caught? Apparently this woman who was clever enough to fool the state to get millions fraudulently could not keep up with the debit card and reported it lost or stolen. It was then that red flags went up and she was arrested.

However, she did get quite a bit of shopping in. She spend $150,000 on purchases. Reyes spent $13,000 in Marion County over two days in February, $26,000 in March and more than $35,000 in April. At the first part of May she spent over $17,500. She also purchased a 1999 Dodge Caravan for $2,000 cash and $800 worth of tires and wheels. Department of Revenue spokesman Derrick Gasperini said he could not comment on the case until it is made public when Reyes is arraigned today. But he said it is common for Turbo Tax to issue prepaid debit cards to clients who get refunds using their software.

When the state issues refunds, it typically does so with a check or a direct deposit to a bank account, he said. Michael Jordan, the state’s chief operating officer cut out a $100 million computer upgrade that the department said would pay for itself by finding those seeking to cheat the system.

I guess Mr. Jordan has some explaining to do, along with Ms. Reyes.