Krysta Marie Reyes, a 25-year-old was recently arrested in Salem, Oregon after she used Turbo Tax Software to fraudulently claim a tax refund worth at least $2 million. According to a police affidavit, Reyes 2011 income tax return consist of $3 million in made-up wages from a fake employer and claimed $2.1 million in refunds, which, after working its way through TurboTax’s automated software, got approved by the The Oregon Department of Revenue.
Reyes got the refund via a Visa debit card (most likely a result of human error)… and within weeks, Reyes had $2 million in spending money which she didn’t waste much time spending. After all that spending, the state didn’t even realize that they were fraud of the whopping sum until two months later when she reported another state issued debit card lost or stolen which prompted an investigation.
Yahoo! Finance reported:
What’s bizarre about the situation is how Reyes was caught. She reported another debit card as lost or stolen to the issuer, which apparently saw enough red flags to get the state’s revenue service on the case. The affidavit doesn’t say how much cash was loaded on the second card or whether it was obtained through a fraudulent tax return as well.
When Reyes was taken into custody June 6, she had allegedly spent about $150,000 over a two-month period, including $2,000 on a Dodge Caravan and more than $800 in tires and wheels, according to police. It’s not clear from the report where the rest of the cash went, though it says she spent tens of thousands of dollars per week.
Reyes was arrested and booked into the Marion County Jail, and was charged with aggravated theft and computer crime. She has since been released, and is due in court on July 5th.
Tags: $2 Million Refund with Turbo Tax, IRS Fraud, Krysta Marie Reyes, Tax Fraud