U.S. Treasury Check Fraud Ring Busted
OAKLAND — A federal grand jury has indicted Franchesca Calagui and Dondre Gray on charges of conspiracy to commit bank fraud and bank fraud. Calagui is also charged with receipt of a U.S. Treasury check with forged endorsement or signature.
According to the indictment unsealed yesterday, from approximately May 2022 through March 2023, Calagui and Gray, both of Emeryville, Calif., allegedly conspired to obtain stolen U.S. Treasury checks, recruit others to fraudulently endorse or sign the checks, and give the checks to Calagui to cash for their personal benefit. During this period, Calagui was employed as a part-time associate banker at JP Morgan Chase Bank.
The indictment includes text messages between Gray and Calagui discussing the scheme, where Gray expressed concern about scamming a bank where Calagui worked, to which Calagui responded “I do not care if u scam us lmao.” Gray reportedly described using runners—individuals paid to enter banks with fraudulent checks, cash them, and return the proceeds to the operators of the scheme. The defendants are charged with attempting to cash at least 339 stolen U.S. Treasury checks totaling more than $850,000.
Acting United States Attorney Patrick D. Robbins, Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office, FBI Acting Special Agent in Charge Dan Costin, TIGTA Acting Special Agent in Charge Brandon Knarr, Special Agent in Charge Ryan Korner from the FDIC Office of Inspector General (FDIC-OIG), San Francisco Division Inspector in Charge Stephen M. Sherwood of the U.S. Postal Inspection Service (USPIS), Special Agent in Charge Dimitriana Nikolov with the Department of Veterans Affairs’ Office of Inspector General’s (VA OIG) Northwest Field Office, and Acting Special Agent in Charge Dean Lake of the Social Security Administration’s Office of Inspector General (SSA OIG) made the announcement.
Both defendants are charged with one count of conspiracy to commit bank fraud under 18 U.S.C. § 1349 and five counts of bank fraud under 18 U.S.C. §§ 1344(1), (2). Additionally, Calagui faces five counts of receipt of a U.S. Treasury check with forged endorsement or signature under 18 U.S.C. § 510(b). Calagui and Gray were arrested and made their initial appearances in federal district court yesterday. They are scheduled to appear before U.S. District Judge Yvonne Gonzalez Rogers on April 3, 2025, for a status conference.
An indictment alleges that a crime has been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each defendant faces a maximum sentence of 30 years in prison and a fine of $1,000,000 on each charged count. Any sentence following conviction would be determined by the court, considering the U.S. Sentencing Guidelines and the federal statute governing sentencing, 18 U.S.C. § 3553.
Special Assistant United States Attorney Cynthia Johnson is prosecuting the case, assisted by Amala James. The prosecution results from an investigation by the IRS-CI, FBI, TIGTA, FDIC-OIG, USPIS, VA OIG, and SSA OIG.
IRS-CI conducts financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, and identity theft. IRS-CI special agents are the only federal law enforcement agents authorized to investigate violations of the Internal Revenue Code, achieving a 90% federal conviction rate. The agency has 20 field offices across the U.S. and 14 attaché posts abroad.
You Are A Stinky Low Life Con Artist and I Hate You
Tax Scammers
Stacie Kitts, CPA
I hate you is harsh, but warranted.
I have no reservation is saying ” I hate you if you are a tax scammer con artist.” You give the tax preparer profession a bad name and I hate you. You put taxpayers in a precarious position and I hate you. You make my job harder and I hate you. You are a disgusting low life taking advantage of low income and elderly taxpayers and I really hate you!!!!
The IRS announced a new series of scams involving tax credits. The scammers promise the taxpayer a large refund and charges a huge amount of money to prepare the return.
After the IRS rejects the taxpayers claim, the taxpayer realizes they are out the preparation fee with no recourse because the tax preparer has disappeared.
WASHINGTON — The Internal Revenue Service encouraged taxpayers to guard against being misled by unscrupulous individuals trying to persuade them to file false claims for tax credits or rebates.
The IRS has noted an increase in tax-return-related scams, frequently involving unsuspecting taxpayers who normally do not have a filing requirement in the first place. These taxpayers are led to believe they should file a return with the IRS for tax credits, refunds or rebates for which they are not really entitled. Many of these recent scams have been targeted in the South and Midwest.
Most paid tax return preparers provide honest and professional service, but there are some who engage in fraud and other illegal activities. Unscrupulous promoters deceive people into paying for advice on how to file false claims. Some promoters may charge unreasonable amounts for preparing legitimate returns that could have been prepared for free by the IRS or IRS sponsored Volunteer Income Tax Assistance partners. In other situations, identity theft is involved.
Taxpayers should be wary of any of the following:
- Fictitious claims for refunds or rebates based on excess or withheld Social Security benefits.
- Claims that Treasury Form 1080 can be used to transfer funds from the Social Security Administration to the IRS enabling a payout from the IRS.
- Unfamiliar for-profit tax services teaming up with local churches.
- Home-made flyers and brochures implying credits or refunds are available without proof of eligibility.
- Offers of free money with no documentation required.
- Promises of refunds for “Low Income – No Documents Tax Returns.”
- Claims for the expired Economic Recovery Credit Program or Recovery Rebate Credit.
- Advice on claiming the Earned Income Tax Credit based on exaggerated reports of self-employment income.
In some cases non-existent Social Security refunds or rebates have been the bait used by the con artists. In other situations, taxpayers deserve the tax credits they are promised but the preparer uses fictitious or inflated information on the return which results in a fraudulent return.
Flyers and advertisements for free money from the IRS, suggesting that the taxpayer can file with little or no documentation, have been appearing in community churches around the country. Promoters are targeting church congregations, exploiting their good intentions and credibility. These schemes also often spread by word of mouth among unsuspecting and well-intentioned people telling their friends and relatives.
Promoters of these scams often prey upon low income individuals and the elderly.
They build false hopes and charge people good money for bad advice. In the end, the victims discover their claims are rejected or the refund barely exceeds what they paid the promoter. Meanwhile, their money and the promoters are long gone.
Unsuspecting individuals are most likely to get caught up in scams and the IRS is warning all taxpayers, and those that help others prepare returns, to remain vigilant. If it sounds too good to be true, it probably is.
Anyone with questions about a tax credit or program should visit www.IRS.gov, call the IRS toll-free number at 800-829-1040 or visit a local IRS Taxpayer Assistance Center.
For questions about rebates, credit and benefits from other federal agencies contact the relevant agency directly for accurate information
Stacie's Tax Stuff 