Lowell and Catherine Mowery, 62 and 61, of Heber, pleaded guilty for conspiracy to defraud the government with respect to a claim and false claim upon the United States. They are both being sentenced on April 8, 2013.
In March 2009, the Mowerys conspired and agreed to participate in a scheme to obtain a payment based upon a false claim for a refund from the IRS. The Mowerys made the claim when they filed a false federal income tax return for the 2008 tax year. The Mowerys claimed a refund of $125,366, to which they knew they were not entitled.
The fraudulent claim was based primarily upon representations that money had been withheld by various financial institutions on behalf of the couple during 2008, and that the couple was entitled to the claimed withholdings. No such withholdings ever occurred.
A conviction for conspiracy to defraud the government with respect to a claim carries a maximum penalty of 10 years in prison, a $250,000 fine, or both. A conviction for false claim upon the United States carries a maximum penalty of 5 years in prison, a $250,000 fine, or both.
“Individuals who participate in fraudulent tax refund schemes think there is a secret formula to get free money from the government. Unfortunately, these schemes only result in law enforcement scrutiny and potential prison time,” said Brian Watson, Special Agent IRS Criminal Investigation.
The investigation preceding the indictment was conducted by the Internal Revenue Service – Criminal Investigation.