Date: 08-17-2016

Case Style: United States of America v. Thomalyn Virden

Case Number: 3:15-cr-00010-SI

Judge: Susan Illston

Court: United States District Court for the Northern District of California (San Francisco County)

Plaintiff's Attorney: Cynthia Stier and Laurie Gray

Defendant's Attorney:

Patrick David Robbins

Description: San Francisco, CA - San Francisco Tax Return Preparer Pleads Guilty To Filing False Tax Return

Thomalyn Virden pleaded guilty in federal court in San Francisco today to filing a false tax return with the Internal Revenue Service, announced United States Attorney Brian J. Stretch and Michael T. Batdorf, Special Agent in Charge of Internal Revenue Service.

In pleading guilty, Virden, 53, of San Francisco, admitted that she prepared and caused to be filed a false tax return which falsely reported that a taxpayer had paid $4,000 in education expenses for post-secondary education. By stating that the filer incurred the post-secondary education expenses, the taxpayer was able to make a claim to receive a refund of approximately $1,000 to which the taxpayer was not entitled. Virden charged a fee for preparing the tax returns. As part of her plea agreement, Virden further acknowledged she prepared other similar false returns as part of a course of conduct and common scheme. She also acknowledged that the additional tax returns were false because they claimed a refund based on education expenses that were not incurred by the taxpayers and that she charged a fee for preparing the tax returns.

Virden, was indicted by a federal grand jury on January 6, 2015. She was charged with one count of conspiracy to file false claims, in violation of 18 U.S.C. § 286, and three counts of filing false claims in violation of 18 U.S.C. § 287. Under the plea agreement, Virden pleaded guilty to one count of filing a false claim, in violation of 18 U.S.C. § 287.

Virden was released on bond. Her next court appearance is scheduled for December 9, 2016, for a sentencing hearing before the Honorable Susan Illston, U.S. District Judge, in San Francisco. The maximum statutory penalty for a violation of 18 U.S.C. § 287 is 5 years’ imprisonment and a fine of $250,000 plus restitution, if appropriate. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

The prosecution is the result of an investigation by the Internal Revenue Service.

18 U.S.C. §286. Conspiracy to defraud the Government with respect to claims

Whoever enters into any agreement, combination, or conspiracy to defraud the United States, or any department or agency thereof, by obtaining or aiding to obtain the payment or allowance of any false, fictitious or fraudulent claim, shall be fined under this title or imprisoned not more than ten years, or both.

18 U.S.C. §287. False, fictitious or fraudulent claims

Whoever makes or presents to any person or officer in the civil, military, or naval service of the United States, or to any department or agency thereof, any claim upon or against the United States, or any department or agency thereof, knowing such claim to be false, fictitious, or fraudulent, shall be imprisoned not more than five years and shall be subject to a fine in the amount provided in this title.

Outcome: Guilty

Plaintiff's Experts:

Defendant's Experts:

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