United States Attorney Matthew D. Krueger announced that Karen Tompkins was recently sentenced in federal court in Milwaukee for defrauding and conspiring to defraud the United States by preparing and filing false tax returns. The tax returns fraudulently claimed tax refunds to which the filers were not entitled, in violation of Title 18, United States Code, Sections 2 and 371, and Title 26, United States Code, Section 7206(2).

United States District Judge Pamela Pepper sentenced Tompkins, of Milwaukee, to one year and one day in prison. Tompkins was also ordered to pay $384,528 in restitution.

According to the plea agreement, Tompkins and her coconspirators were employed as tax return preparers at a branch of Liberty Tax Services ("LTS") located at 3929 N. Humboldt Boulevard in Milwaukee, Wisconsin. As tax return preparers, the conspirators aided, assisted, counseled, and advised in the preparation and filing of federal income tax returns. Tompkins was the office manager of that branch, and she and her coconspirators artificially inflated tax filer’s claimed income, typically by inventing Schedule C business income for non-existent business, such as "hair braiding" or "dancing" businesses. They also claimed false W-2 income and Additional Child Tax Credits to which the filers were not entitled. This caused the IRS to pay out larger tax refunds than it otherwise would have. In return for these inflated tax refunds, Tompkins and her coconspirators received kickbacks

This case was investigated by the IRS Criminal Investigation division. The case was prosecuted by Assistant United States Attorney Benjamin Taibleson.  

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Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin announced that Karen Tompkins (Age: 58) of Milwaukee, Wisconsin, appeared in federal court in Milwaukee and pleaded guilty to two felony counts. Specifically, Tompkins admitted to knowingly taking part in a conspiracy to defraud the United States by preparing and filing with the IRS false tax returns that fraudulently claimed tax refunds to which the individuals were not entitled. Tompkins also admitted to willfully aiding in the preparation and filing of false income tax returns while employed as a tax return preparer.

Co-conspirators Shalonda Burns (Age: 41) and Latoya Bush (Age: 38), both of Milwaukee previously plead guilty to the same charges on September 13, 2018 and November 5, 2018. A fourth defendant, Lori Ann Stringfellow was indicted on February 13, 2018.

Tompkins was employed as a manager at a branch of Liberty Tax Services that was located at 3929 N. Humboldt Boulevard in Milwaukee, Wisconsin. Tompkins admitted to conspiring to inflate filers’ tax refunds by including false information in the filers’ tax returns. This included inventing false Schedule C business income for non-existent businesses and claiming false W-2 income and Additional Child Tax Credits to which the filers were not entitled. Additionally,  Tompkins admitted to receiving kickbacks from the inflated tax refunds and creating fake documentation that was meant to support the filers’ business income.

Tompkins faces up to eight years in prison and fines of up to $350,000 and is scheduled to be sentenced on March 19, 2019.

This matter was investigated by the Internal Revenue Service Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Benjamin Taibleson.

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For Additional Information Contact:

Public Information Officer Dean Puschnig 414-297-1700