Springfield woman sentenced to seven years for role in $700,000+ tax fraud conspiracy

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

A Springfield, Mo., woman was sentenced in federal court today for her role in a $718,000 tax fraud conspiracy.

Nancy Lorine Walker, 56, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to seven years and eight months in federal prison without parole. The court also ordered Walker to pay $317,498 in restitution (the amount of refund actually received).

On Aug. 10, 2017, Walker pleaded guilty to one count of conspiracy to defraud the government, one count of presenting a false claim, one count of theft of government property and one count of aggravated identity theft.

Co-defendants Carolyn Alice Cobb, 56, and Clementine Lockett, 43, both of Springfield, have also pleaded to their roles in the conspiracy. In addition to the conspiracy, Cobb pleaded guilty to two counts of presenting a false claim and one count of theft of government property. Lockett also pleaded guilty to two counts of presenting a false claim. Cobb was sentenced to six years and five months in federal prison and ordered to pay $215,184 in restitution. Lockett is scheduled to be sentenced on May 22, 2018.

Walker, Cobb and Lockett 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.

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