Indiana Tax Preparer Sentenced to Prison for Filing False Returns

Christina Moles, a 50-year-old Indiana tax preparer, has been sentenced to 18 months in federal prison for orchestrating a scheme involving the filing of 382 falsified federal tax returns. The scheme, which spanned from 2015 to 2021, resulted in substantial financial losses for the United States government and exposed Moles’ unsuspecting clients to potential audits and financial repercussions.

The sentencing, handed down by Judge James R. Sweeney II in U.S. District Court in Indianapolis, also includes an order for Moles to pay $567,010 in restitution to the government. Upon completion of her prison term, Moles will be subject to three years of supervised release.

Moles, who also goes by the name Tina Lashley, had previously pleaded guilty to wire fraud and aiding and assisting in the making of a false federal income tax return. The U.S. Department of Justice issued a news release detailing the case and the sentencing.

Federal prosecutors presented evidence indicating that Moles actively advertised her tax preparation business with the promise of guaranteed large refunds. This enticement attracted numerous clients, many of whom had modest incomes. The prosecutors revealed that Moles’ clients often received refunds ranging from $5,000 to $10,000, significantly exceeding what they were legitimately entitled to.

The scheme involved Moles falsely claiming that her clients had incurred educational expenses at institutions such as Ivy Tech and Penn Foster online college. These false claims enabled Moles to secure undeserved tax credits for her clients, further inflating their refunds.

John E. Childress, the acting U.S. attorney for the Southern District of Indiana, emphasized the severity of Moles’ actions, stating that her "deceit" led to "hundreds of thousands of dollars in unjustified refunds." He also highlighted the potential harm inflicted on Moles’ clients, who now face the risk of audits and the obligation to repay the fraudulently obtained funds.

Ramsey Covington, an acting special agent in IRS criminal investigations, echoed Childress’ sentiments, condemning Moles’ actions as a betrayal of trust. Covington asserted that Moles’ deceit "didn’t just cheat the system, it undermined a benefit intended to help families invest in their futures."

The case against Moles began to unfold in May 2024, when a U.S. District Court grand jury indicted her. The indictment served as the formal accusation, outlining the charges against Moles and initiating the legal proceedings that ultimately led to her conviction and sentencing.

In a sentencing memo submitted to the court, Assistant U.S. Attorney Adam Eakman advocated for a 30-month prison sentence for Moles. Eakman argued that such a sentence would serve as a powerful deterrent, sending a clear message to other potential tax fraudsters that violations of internal revenue laws carry significant consequences, including imprisonment.

The case underscores the importance of choosing tax preparers wisely and verifying the accuracy of tax returns before filing them. Taxpayers are ultimately responsible for the information reported on their tax returns, even if they rely on a professional for assistance. Engaging in fraudulent tax practices can lead to severe penalties, including imprisonment, fines, and the obligation to repay fraudulently obtained refunds.

The Internal Revenue Service (IRS) actively investigates allegations of tax fraud and pursues prosecution of individuals and businesses that engage in such activities. The agency encourages taxpayers to report suspected tax fraud through its website or by contacting the IRS directly.

The Moles case serves as a cautionary tale for tax preparers who may be tempted to engage in fraudulent practices. The pursuit of financial gain through illegal means can have devastating consequences, not only for the perpetrator but also for the unsuspecting clients who are caught in the web of deceit.

The sentencing of Christina Moles reflects the commitment of law enforcement and the judicial system to hold accountable those who attempt to defraud the government and undermine the integrity of the tax system. It also serves as a reminder that honesty and ethical conduct are paramount in the tax preparation profession. Taxpayers should carefully vet their tax preparers, understand the information being reported on their returns, and report any suspected fraudulent activity to the IRS. The pursuit of tax compliance and the prevention of tax fraud are essential to maintaining a fair and equitable tax system for all. The Moles case is just one example of the ongoing efforts to combat tax fraud and protect the interests of taxpayers and the government.