On August 27, 2012, Kevin M. Silva, 54, and Christine A. Silva, 67, both formerly of Fountain Hills, were sentenced by U.S. District Judge David G. Campbell to 24 months in prison and ordered to perform 100 hours of community service for tax fraud. They were ordered to self-surrender on Oct. 29, 2012.
The Silvas each pleaded guilty to conspiracy to defraud the government with respect to false claims upon the United States and the actual presentation of a false claim upon the United States on June 4, 2012.
In the course of their prior guilty pleas, the Silvas admitted to conspiring and agreeing to participate in a tax fraud scheme in which the obtained payments of false claims for refunds from the IRS by filing false federal income tax returns. In each instance, the Silvas claimed refunds to which they knew they were not entitled. All of the fraudulent claims were based primarily upon representations that money had been withheld by various financial institutions on behalf of the couple during the subject tax years and that the couple was entitled to the claimed withholdings. No such withholdings ever occurred. In support of each claim, the Silvas submitted to the IRS various false IRS Forms 1099-OID.
In total, the Silvas admitted to falsely claiming $1,544,034 in refunds and agreed to repay the remaining outstanding balance of $535,581.13 to the IRS. The payment was made via a cashier’s check on August 23, 2012. In the course of the investigation, the IRS was able to recover over $250,000 from the Silvas in addition to the payment.
The investigation of the tax fraud scheme was conducted by Internal Revenue Service, Criminal Investigation.