Springfield women plead guilty to roles in $718,000 tax fraud conspiracy

(From the U. S. Attorney for the Western District of Missouri)

Two Springfield, Mo., women pleaded guilty in federal court today to their roles in a $718,000 tax fraud conspiracy.

Carolyn Alice Cobb, 56, and Clementine Lockett, 43, both of Springfield, pleaded guilty in separate appearances before U.S. District Judge M. Douglas Harpool. In addition to the conspiracy, Cobb pleaded guilty to two counts of presenting a false claim and one count of theft of government property. Cobb remains in federal custody without bond. Lockett, who is on bond, also pleaded guilty to two counts of presenting a false claim.

Co-defendant Nancy Lorine Walker, 55, of Springfield, pleaded guilty on Aug. 10, 2017, to her role in the conspiracy. Walker also pleaded guilty to one count of presenting a false claim, one count of theft of government property and one count of aggravated identity theft.

Cobb, Lockett and Walker each admitted that she participated in a conspiracy, which operated from January 2010 to April 23, 2013, to submit false federal income tax returns and make false claims for federal income tax refunds for the 2009-2012 tax years.

Conspirators used the means of identification of individuals, including their names and social security numbers, and Turbo Tax to prepare and electronically file federal income tax returns. Those returns were false and fraudulent in that they included fictitious IRS Form W-2 information, listing employers who did not employ the individual listed on the return and reporting wages not earned and employment taxes not withheld from the individual.

The conspiracy resulted in a total of $718,927 in false claims for federal income tax refunds. Conspirators actually received a total of $317,498 in refunds.

Under federal statutes, Cobb is subject to a sentence of up to 25 years in federal prison without parole. Lockett is subject to a sentence of up to 15 years in federal prison without parole. Walker is subject to a sentence of up to 20 years in federal prison without parole, plus a mandatory consecutive sentence of two years in federal prison for aggravated identity theft. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by IRS-Criminal Investigation.