2 Canadians charged in U.S. with making fake claims to get IRS tax refunds
SEATTLE - Two Canadian men have been charged with depositing illigitimately obtained tax refund cheques from the U.S. Internal Revenue Service.
Donald Mason of Fort Saskatchewan, Alta., and John Chung of Kelowna, B.C., were arrested last week and made their initial appearances Monday in U.S. District Court in Seattle on charges of stealing public money.
Investigators alleged that Mason opened a Bank of America account in Bellingham and deposited US$360,000, while Chung opened one in Seattle and deposited $370,000.
The IRS alleges that the money came from fraudulent nonresident alien income tax returns for 2006. The amounts were allegedly claimed as taxes withheld at source, but an investigation of IRS databases found that no tax was withheld, according to complaints filed against the accused.
Bank officials called the police on Thursday when the pair allegedly tried to withdraw some of the money.
Investigators claimed that Mason had wired $2,000 to a Canadian bank account, and that Chung had taken out tens of thousands of dollars.
IRS statistics indicate the agency investigated more than 400 similar cases in fiscal year 2009 and recommended prosecution in 193.
The agency said it achieved an incarceration rate of 78.8 per cent, with prison sentences averaging 20 months.
