Scottsdale chiropractor filed over $6 Million in false tax refund claims

Adrianne Marta Frazer, 62, a chiropractor practicing in Scottsdale, Ariz., was sentenced by U.S. District Judge G. Murray Snow to 30 months in prison and ordered to pay $703,478 in restitution to the federal government. Frazer was previously found guilty by a federal jury of five counts of filing false and fictitious claims for tax refunds.

Evidence at trial showed that Frazer knowingly filed false tax returns utilizing a common scheme known as the Form 1099-OID scheme. Although many of Frazer’s tax returns were immediately rejected by the Internal Revenue Service, one was accepted, resulting in the issuance of a $593,651 refund. Within days of getting the refund check, Frazer began spending and transferring the money. Frazer also solicited others to attend seminars that taught participants on how to use the 1099-OID scheme and kept filing false returns after being put on notice that the Form 1099-OID scheme was fraudulent.

The investigation in this case was conducted by the Internal Revenue Service – Criminal Investigation.