Federal prosecutors announced prison sentences for two women connected to an Aurora financial firm that the feds say ran a tax fraud scheme.
Click below for the story as well as a link to a previous story and a copy of the U.S. Attorney's press release.
Here is our story:
Two more sentenced in tax fraud case
By Brandon Johansson
AURORA | Two more people connected to a $2-million tax-fraud scheme at an Aurora financial services company have been sentenced to federal prison, prosecutors announced last week.
Manivone Saignaphone, 44, of Aurora, was sentenced to 8 months in federal prison and ordered to pay $52,000 in restitution, prosecutors said.
Catherine Senninger, 65, of Ogden, Utah, was sentenced to 36 months in federal prison and ordered to pay $128,000 in restitution.
Both are required to report to prison Oct. 25.
In 2008, a Denver grand jury indicted a total of eight people, including Saignaphone and Senninger, in connection with the company, Olympia Financial and Tax Services, and charged them with multiple crimes related to preparing and filing false tax returns.
Some of the indicted defendants filed or helped file more than 700 amended returns with the IRS, containing falsified information. The claims asked for refunds in excess of $2 million to taxpayers for tax years 2001 through 2004. Another 400 amended returns with the Colorado Department of Revenue containing falsified information asked for refunds in excess of $300,000 to taxpayers for tax years 2001 through 2004. Some of those claims were paid, authorities said.
Others filed or helped file more than 50 amended returns with the IRS containing falsified information. Those claims asked for refunds in excess of $200,000 to taxpayers for tax years 2002 through 2005.
The businesses sought tax refunds for taxpayers by preparing and filing amended tax returns with the IRS and CDR on behalf of their customers.
“A vast majority of tax return preparers follow the law,” U.S. Attorney John Walsh said in a statement. “Those few preparers who attempt to take advantage of the IRS and the taxpayers of the United States will face serious consequences.”
Here is a link to a previous story:
And here is the U.S. Attorney's press release:
DEPARTMENT OF JUSTICE
NEWS RELEASE
John F. Walsh
United States Attorney, District of Colorado
FOR IMMEDIATE RELEASE
September 24, 2010
TWO SENTENCED TO PRISON FOR THEIR INVOLVEMENT IN $3.1 MILLION TAX FRAUD SCHEME
DENVER – Manivone Saignaphone, age 44, of Aurora, Colorado, and Catherine Senninger, age 65, of Ogden, Utah, were both sentenced recently to federal prison terms for their participation in a scheme to submit false tax returns to the IRS and the Colorado Department of Revenue. Saignaphone was sentenced to serve 8 months in federal prison, followed by 3 years of supervised release. She was also ordered to pay restitution totaling $52,868.65 to the IRS. Saignaphone is scheduled to report to a facility designated by the Bureau of Prisons on or before October 25, 2010. Senninger was sentenced to serve 36 months in federal prison, followed by 3 years of supervised release. She was also ordered to pay restitution totaling $128,664 to the IRS and the Colorado Department of Revenue. Senninger is scheduled to report to a facility designated by the Bureau of Prisons on or before October 25, 2010. The sentences were handed down by U.S. District Court Judge Marcia S. Krieger.
Manivone Saignaphone was indicted by a federal grand jury in Denver on November 4, 2008. On December 3, 2009, Manivone Saignaphone pled guilty. According to the information contained in the indictment as well as Manivone Saignaphone’s plea agreement, Saignaphone was a postal employee who also worked at the office of a Colorado corporation which operated under the name of Olympia Financial and Tax Services, Inc. ("Olympia"). Olympia was owned and operated by an individual named Jeffrey Harris. Olympia's primary business was to seek tax refunds for customers (also referred to as taxpayers) by preparing and filing amended, individual tax returns with the IRS and Colorado Department of Revenue (CDR) on behalf of such customers.
Olympia was paid a fee for its services which usually involved charging a customer a percentage of the IRS and CDR refund payments -- typically ranging from 40% to 50% of such government refunds. Saignaphone was paid a percentage of the customer's refund for her services with Olympia, normally at 20% of her sales. As a result of the scheme, Olympia, Harris, Saignaphone and others caused over 700 amended returns to be filed with the IRS which contained falsified information, resulting in claims to the IRS for refunds in the amount of $2,359,970 to taxpayers for tax years 2001 through 2004. The IRS paid a portion of such claims. In addition, 400 amended returns with the CDR containing falsified information, resulting in claims to the CDR for refunds in the amount of $397,774 to taxpayers for tax years 2001 through 2004. The CDR paid a portion of such claims.
Catherine Senninger was indicted by a federal grand jury in Denver on November 4, 2008. On March 5, 2010, a jury found Senninger guilty of five counts of mail fraud and two counts submitting false claims in connection with false tax returns. According to the allegations contained in the indictment, as well as facts presented to the jury during the trial, Catherine Senninger and others beginning in February of 2004, and continuing through February 2005, knowingly devised a scheme to defraud the IRS, and CDR. As part of the scheme, Jeffrey Harris owned and controlled a Colorado corporation which operated under the names of Grand Peak Mortgage and Financial Services, Inc. and Olympia Financial and Tax Services, Inc. (“Olympia”), located in Aurora Colorado which primary business was to seek tax refunds.
Senninger prepared amended IRS and CDR tax returns for Olympia customers so as to entitle the customers to a refund. In the course of preparing such returns, Senninger frequently made up figures on the returns by modifying the information provided to her on the client questionnaires and placed false information on amended returns in an effort to make such returns appear true, correct and complete so as to avoid detection by the IRS and Department of Revenue, and ultimately ensure payment of a refund. Senninger then sent the falsified, amended returns to Olympia’s corporate office in Colorado where Olympia associates obtained the signature of the customer and then filed such amended returns with the IRS and CDR on behalf of the customer. Customers were charged a fee typically ranging from 40% to 50% of the refund amount. Senninger and others filed, or assisted in the preparation and filing, of over 100 amended returns with the IRS and CDR containing falsified information, resulting in IRS and CDR refunds in excess of $200,000 to taxpayers for tax years 2001 through 2003.
Co-defendants include:
• Jeffrey Harris, who was sentenced on June 30, 2010 to 108 months in prison followed by 3 years supervised release, and was ordered to pay $351,920 in restitution.
• LouAnn Savala, who was sentenced on April 30, 2010 to 30 months in prison followed by 3 years supervised release, and was ordered to pay $224,287.65 in restitution.
• Annalisa Whittaker, who was sentenced on May 3, 2010 to 5 years probation, and was ordered to pay $52,868.65 in restitution.
• Manikhone Saignaphone (also known as Mani Saignaphone), who is scheduled to be sentenced on November 23, 2010.
“A vast majority of tax return preparers follow the law,” said U.S. Attorney John Walsh. “Those few preparers who attempt to take advantage of the IRS and the taxpayers of the United States will face serious consequences.”
“The illegal conduct in this case started with postal employees, which cuts at the soul of an organization that dates back to our country’s founding and casts a shadow on the dedicated service of all those employees who devote their careers and lives in service to America. The Postal Service Office of Inspector General remains vigilant of any illegal conduct by Postal employees,” said David Montoya, Special Agent in Charge of the United States Postal Service Office of the Inspector General.
“Return Preparer fraud is a priority for the IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like these,” said Christopher M. Sigerson, Special Agent in Charge for IRS Criminal Investigation for the Denver Field Office. “Taxpayers should choose carefully when hiring a tax preparer and avoid return preparers who base their fee on a percentage of the amount of the tax refund.”
This case was investigated by the United States Postal Service – Office of the Inspector General, the Colorado Department of Revenue, and IRS Criminal Investigation. The defendants were prosecuted by Assistant U.S. Attorney Tim Neff with assistance from Department of Justice Trial Attorney John Scully.
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United States Attorney’s Office Press Releases are also on the Internet
Visit http://www.usdoj.gov/usao/co
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