Post by Sapphire Capital on Jul 11, 2008 23:10:00 GMT 4
another sample:
Time up for Kenyan behind US tax fraud
Story by SAMUEL SIRINGI
Publication Date: 6/27/2008
KANSAS CITY, USA
Dissatifaction with a meagre income, or sheer desire to get rich quickly, is tormenting a Kenyan woman in the distant land of opportunities.
US District Court in Downtown Kansas City, Missouri, where Ms Wavinya pleaded guilty to a multi-million tax fraud case on Thursday. Photo/ THE STAR, USA
Loretta Wavinya, 31, who hatched a scheme to defraud the US tax authorities of a staggering Sh975 million ($15 million), has pleaded guilty to playing a role in the conspiracy. The resident of Kansas City made the plea before US judge John T. Maughmer on Wednesday to the charges contained in a July 18, 2007, prosecution.
She admitted taking part in the multi-million dollar conspiracy to defraud the country’s tax collection agent, the Internal Revenue Service, said US Attorney for the Western District of Missouri John F. Wood.
Ms Wavinya was taken to court last year in Kansas City, along with four other Kenyans, facing multiple counts of tax fraud, money laundering, wire fraud, identity theft and conspiracy. The prosecution described her at the time as the leader of a racket in which more than 360 fraudulent tax refund claims amounting to nearly Sh1 billion were filed
.
Investigators
Arraigned in court together with Ms Wavinya, 30, were her sister, Ms Lilian Nzongi, 26, Mr Aaron Mutavi, 28, Mr Moses Ndubai, 33 and Mr Vincent Ogega, 23. Another seven Kenyans were also linked by investigators to the case. Some of them are believed to have returned to Kenya.
The scheme involved stealing the identities of hundreds of victims, primarily residents of old people’s homes, which were used to seek more than Sh975 million in federal tax refunds. Under the US law, Ms Wavinya could be subjected to a mandatory minimum sentence of up to 27 years in prison, plus a fine up to Sh4.88 billion ($750,000).
A sentencing hearing will be held after the completion of a pre-sentence investigation by the US probation office, according to an announcement by Don Ledford, public affairs officer of the Western District of Missouri, US Attorney’s Office.
Ms Wavinya was first charged with the offence in July last year together with other conspirators. On April 16 this year, co-defendants Vincent Niagwara Ogega, 24, a Kenyan residing in Missouri, and Rashira Lewis, 21, of Kansas City, each pleaded guilty to wire fraud.
But on Wednesday, Ms Wavinya admitted that she had a substantial role in the conspiracy to steal identity information, predominantly from elderly nursing home patients. She then used the information to file at least 365 fraudulent federal tax returns from February 2005 to July last year.
Together with her conspirators, she filed fraudulent tax returns, seeking refunds in 27 different US states. In addition, Ms Wavinya pleaded guilty to wire fraud and aggravated identity theft.
She conducted the offences as she worked as a tax preparer and as a certified radiology technician at Kansas City. Through her job, she gained access to patient identity information.
Law enforcement officers, conducting a search at Ms Wavinya’s residence and elsewhere, discovered patient information from area health care providers, containing hundreds of patients’ data.
In order to conceal their true identities, Ms Wavinya and other accomplices filed the fraudulent tax returns electronically through public internet “hot spots,” such as restaurants and through unsecured private wireless networks maintained by unwitting individuals.
Wireless network
Law enforcement officers discovered evidence that Ms Wavinya used her neighbour’s unsecured wireless network to connect to the internet. The false tax information was used to generate federal refund claims in the range of Sh260,000 ($4,000) to Sh3.1 million ($47,000) at each turn.
Conspirators also submitted false returns to tax authorities to generate claims in the range of Sh97,500 ($1,500) to Sh1.3 million ($20,000) per return. They often filed multiple state tax returns in conjunction with a single federal tax return.
Mail related to the returns and credit cards were sent to commercial mailboxes across Kansas City as a way of avoiding detection, established investigators. Ms Wavinya and other conspirators often used “runners” to pick up this mail in order to conceal their own identities.
They opened numerous bank accounts in Kansas City and elsewhere for the purpose of receiving electronic fund transfers of tax refund payments. Shortly after a refund payment would be wired into an account, conspirators used runners to help them withdraw the money.
The conspirators wrote cheques to the runners in amounts less than Sh650,000 ($10,000) and drove the runners from bank to bank to cash the cheques until the accounts were depleted, or when banks or tax staff detected the fraud and froze the account.
Some of the money obtained by the conspiracy was wired to banks in Kenya.
Federal custody
Sometimes, the conspirators routed electronic transfers of tax refunds directly to prepaid debit-like cards obtained anonymously through an internet application process.
Ms Wavinya, who remains in federal custody, is the third defendant to plead guilty to charges contained in the federal indictment. Mr Ogega’s role in the scheme was to cash the cheques and provide the proceeds to other conspirators in exchange for a flat rate fee.
On April 16, Mr Ogega admitted to participating in and aiding and abetting 12 fraudulent financial transactions totalling Sh5.2 million ($81,000) from April 21 to August 11, 2006. Ms Lewis’ role in the scheme was to receive fraudulent refunds into her bank accounts and then withdraw the money and provide it to her co-conspirators.
Time up for Kenyan behind US tax fraud
Story by SAMUEL SIRINGI
Publication Date: 6/27/2008
KANSAS CITY, USA
Dissatifaction with a meagre income, or sheer desire to get rich quickly, is tormenting a Kenyan woman in the distant land of opportunities.
US District Court in Downtown Kansas City, Missouri, where Ms Wavinya pleaded guilty to a multi-million tax fraud case on Thursday. Photo/ THE STAR, USA
Loretta Wavinya, 31, who hatched a scheme to defraud the US tax authorities of a staggering Sh975 million ($15 million), has pleaded guilty to playing a role in the conspiracy. The resident of Kansas City made the plea before US judge John T. Maughmer on Wednesday to the charges contained in a July 18, 2007, prosecution.
She admitted taking part in the multi-million dollar conspiracy to defraud the country’s tax collection agent, the Internal Revenue Service, said US Attorney for the Western District of Missouri John F. Wood.
Ms Wavinya was taken to court last year in Kansas City, along with four other Kenyans, facing multiple counts of tax fraud, money laundering, wire fraud, identity theft and conspiracy. The prosecution described her at the time as the leader of a racket in which more than 360 fraudulent tax refund claims amounting to nearly Sh1 billion were filed
.
Investigators
Arraigned in court together with Ms Wavinya, 30, were her sister, Ms Lilian Nzongi, 26, Mr Aaron Mutavi, 28, Mr Moses Ndubai, 33 and Mr Vincent Ogega, 23. Another seven Kenyans were also linked by investigators to the case. Some of them are believed to have returned to Kenya.
The scheme involved stealing the identities of hundreds of victims, primarily residents of old people’s homes, which were used to seek more than Sh975 million in federal tax refunds. Under the US law, Ms Wavinya could be subjected to a mandatory minimum sentence of up to 27 years in prison, plus a fine up to Sh4.88 billion ($750,000).
A sentencing hearing will be held after the completion of a pre-sentence investigation by the US probation office, according to an announcement by Don Ledford, public affairs officer of the Western District of Missouri, US Attorney’s Office.
Ms Wavinya was first charged with the offence in July last year together with other conspirators. On April 16 this year, co-defendants Vincent Niagwara Ogega, 24, a Kenyan residing in Missouri, and Rashira Lewis, 21, of Kansas City, each pleaded guilty to wire fraud.
But on Wednesday, Ms Wavinya admitted that she had a substantial role in the conspiracy to steal identity information, predominantly from elderly nursing home patients. She then used the information to file at least 365 fraudulent federal tax returns from February 2005 to July last year.
Together with her conspirators, she filed fraudulent tax returns, seeking refunds in 27 different US states. In addition, Ms Wavinya pleaded guilty to wire fraud and aggravated identity theft.
She conducted the offences as she worked as a tax preparer and as a certified radiology technician at Kansas City. Through her job, she gained access to patient identity information.
Law enforcement officers, conducting a search at Ms Wavinya’s residence and elsewhere, discovered patient information from area health care providers, containing hundreds of patients’ data.
In order to conceal their true identities, Ms Wavinya and other accomplices filed the fraudulent tax returns electronically through public internet “hot spots,” such as restaurants and through unsecured private wireless networks maintained by unwitting individuals.
Wireless network
Law enforcement officers discovered evidence that Ms Wavinya used her neighbour’s unsecured wireless network to connect to the internet. The false tax information was used to generate federal refund claims in the range of Sh260,000 ($4,000) to Sh3.1 million ($47,000) at each turn.
Conspirators also submitted false returns to tax authorities to generate claims in the range of Sh97,500 ($1,500) to Sh1.3 million ($20,000) per return. They often filed multiple state tax returns in conjunction with a single federal tax return.
Mail related to the returns and credit cards were sent to commercial mailboxes across Kansas City as a way of avoiding detection, established investigators. Ms Wavinya and other conspirators often used “runners” to pick up this mail in order to conceal their own identities.
They opened numerous bank accounts in Kansas City and elsewhere for the purpose of receiving electronic fund transfers of tax refund payments. Shortly after a refund payment would be wired into an account, conspirators used runners to help them withdraw the money.
The conspirators wrote cheques to the runners in amounts less than Sh650,000 ($10,000) and drove the runners from bank to bank to cash the cheques until the accounts were depleted, or when banks or tax staff detected the fraud and froze the account.
Some of the money obtained by the conspiracy was wired to banks in Kenya.
Federal custody
Sometimes, the conspirators routed electronic transfers of tax refunds directly to prepaid debit-like cards obtained anonymously through an internet application process.
Ms Wavinya, who remains in federal custody, is the third defendant to plead guilty to charges contained in the federal indictment. Mr Ogega’s role in the scheme was to cash the cheques and provide the proceeds to other conspirators in exchange for a flat rate fee.
On April 16, Mr Ogega admitted to participating in and aiding and abetting 12 fraudulent financial transactions totalling Sh5.2 million ($81,000) from April 21 to August 11, 2006. Ms Lewis’ role in the scheme was to receive fraudulent refunds into her bank accounts and then withdraw the money and provide it to her co-conspirators.