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Randy L. Rasmussen / The Oregonian via AP
Before her June 6 arrest, Krystle Marie Reyes' spending spree included about $1,800 in cash to buy a 1999 Dodge Caravan, a queen-sized air mattress and a deep fryer.
SALEM, Ore. -- A 25-year-old woman who duped the state of Oregon into giving her a $2.1 million tax refund pleaded guilty Tuesday and was sentenced to 5 1/2 years in prison.
Krystle Marie Reyes, of Salem, entered guilty pleas to one felony count of tax evasion and three counts of felony fraud. She had faced eight felony charges.
Reyes' court-appointed lawyer, Gale Rieder, said her client faced "overwhelming" evidence, The Oregonian reported.
Rieder said her client "wanted to take responsibility for what she'd done."
"She's remorseful and saddened by the impact on her family," the lawyer said. "She has no criminal history."
$2.1M tax refund, $150K shopping spree: Alleged scammer charged
The woman received the refund on a debit card and spent about $150,000 before twice reporting the card lost or stolen. At that point the ruse was discovered. The state has recovered about $1.9 million of the money.
An Oregon Department of Revenue spokesman said Tuesday that the findings of an internal agency audit would be released Wednesday.
Reyes filed an electronic tax return in late January via Turbo Tax, erroneously reporting earnings of more than $3 million, authorities have said. Her request for a $2.1 million refund was initially red-flagged by an automated system.
1999 Dodge Caravan
The Oregonian quoted from a 24-page search warrant affidavit regarding what happened next.
The return was set aside for review by processing staff and managers for potential fraud. But "some time later," the affidavit said, a Revenue employee overrode the flagged payment and the refund was issued.
By policy, three agency employees are required to verify the override, the newspaper said. However, according to the affidavit, no one responsible for reviewing the return opened the file to look at it or looked at the W-2 form Reyes filed.
Reyes previously worked at retirement facilities or senior care homes and reported income of less than $15,000 per year in 2009 and 2010, records show.
Before her June 6 arrest, Reyes' spending spree included about $1,800 in cash to buy a 1999 Dodge Caravan and spending $851 on tires and wheels.
The affidavit says other purchases included a queen-sized air mattress, a deep fryer, an air conditioner and a cream and gray floral rug. She bought a sofa and recliner with brown leather trim.
Andrew Campbell, a senior assistant state attorney general who filed the charges against Reyes, declined to comment on Tuesday's plea deal.
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Leave a Comment:
Good. If everyone just went around fudging numbers so as to collect obscene amounts of money from the government our nation would be like, what, billions of dollars in debt? I'm glad they caught her before everyone and their sisters began looting our treasury. She should have just taken a cue from those honest men in Wall Street. They, sir, earn their money without any moral injustices and only ask for what they need. Poor people need to learn that our society demands that they stay poor, since obviously their economic condition is a direct representation of their ethical character. At least that's what my tax-exempt pastor, investment banker, and local politicians have told me. Long live the two-class citizen system and the Roman categorization of classes. Patricians rule!
Am I the only one that read the paragraph The return was set aside for review by processing staff and managers for potential fraud. But "some time later," the affidavit said, a Revenue employee overrode the flagged payment and the refund was issued.
Yes what Reyes did was wrong, but there is a employee here that should be paying some form concequences too.
Yes cominform, your attention to detail still amazes me. This is why you are no longer in the Military. No attention to detail again.
6dogs, I agree. The refund should never even have been issued. Really? File a 15k income return for a few years and then all of a sudden a 3m one. come on revenue service, that should be red flagged and subject to review immediately. How many returns would see that increase legitimately? The employees who signed off on that should be held accountable.
So I think I may be confused here... Can someone clear this up for me...
She HAD the $2.1 million dollars. The IRS signed off after the reviews and gave it to her... She got CAUGHT because she... wait for it... Reported it stolen..... TWICE?!?!?!
She HAD the money!!!!! But she tried to "cheat the system" AGAIN by reporting it stolen, not once, but twice!!!! Then they looked into the stolen/lost report and were like whoa whoa whoa how did this lady get $2.1 million tax return...
Is that REALLY what happened here? Or am I misreading it somewhere???
"...twice reporting the card lost or stolen. At that point the ruse was discovered."
Also how do you get a $2.1 million tax return on an income of $3 million??? That doesn't seem right either... (No Romney comments please this is NOT a politics articles!)
He he he....... She pulled a "Romney".... He he he
Another clear case of someone ( several people 3 ) not doing their job. And then some!
The latest she filed was most likely april 15th the earilest maybe the end of january.
So yes again why so long?
Unbelievable-895817He he he....... She pulled a "Romney".... He he heAnother Obama voter off the streets! Just shows another inept Govt. program. Whether its the IRS, Postal Service, Amtrak, DMV, TSA or any other Govt organization filled with inadequate union workers.
This IS a political article... This article illustrates both the sense of entitlement and lack of ethics rampant in our populace and the incompetence of government. Those two trends combined yield a 14 TRILLION dollar debt, a complete lack of responsibility on the part of Obama and ALL elected officials. DC and most state governments needs a massive enema. We need a shrewd and pragmatic business person to methodically hack away at government waste and Romney (love him or hate him) is, at this point, our only choice. Obama failed in his hope and change platform and it is time for him to move on. He is completely incompetent (I am mean the ABSOLUTE WORST PRESIDENT EVER) when it comes to matters of the economy.
Obama seems like a nice guy- former coke-head and stoner who would probably be fun to smoke a joint with and shoot some hoops but he has no business in the Oval Office-- the guy never had a job that wasn't paid for with taxpayer money.
So you're really doing this? You're going so far as to blame this situation on Obama? I knew there were no depths to the ridiculousness the haters would go to but it's becoming laughable. He really does get blamed for EVERYTHING no matter how stupid it makes you people look.
Oh yeah, and why assume she's an Obama voter and why do you want to get all of them off the streets? You know, the nazis wanted the Jews off the streets too...the similarities between the right wing and the nazis is becoming truly astounding. You guys have initiated a war against blacks, hispanics, gays, and women...just be honest with your hatred and admit you're working on a master race of @!$%#s and inbreds. Whether you know it or not that's where your side is leading.
If anything, this is more confirmation that the poor are poor for a reason and that taking the money from the wealthy and GIVING it to them is not the answer! This woman didn't know what to do with $2.1M! What makes you think the poor will know what to do with $10,000 more a year at minimum. They are poor for a reason, this is America where nothing is given away and needs to be worked for, or at least should be.
OK, let's play "Who's the Bigger Idiot". Reyes or the IRS? My vote goes to the IRS for 2.1 million reasons. Also, I think she got off light. Should have been 10 years. Lastly, this chick is a bad shopper. I mean really? An old Caravan, a deep fryer, a rug and some furniture? When she coulda been in the Cayman's? Wait. Maybe she is the bigger idiot!
This person got 5 1/2 years ... while a CEO on wall street would just be let go with a generous severance package for stealing much more dinero and damaging many more lives ................
But the CEO's life is much more complicated and less comprehensible for the clueless masses ... than a overweight third world idiot ................
CanadianPaul, she was a sorry example of someone who doesn't know how to spend millions of money she got illegally from the government. Buying an air mattress and a deep fryer, that's a hoot!
If it were me I would be in some South American country right now that has no extradition treaty with the US enjoying the sun and the beaches. But the only way I'll ever see 2 mil is to win the lottery.
How many years in jail got the moron who gave her that refund?
5 1/2 years for 2.1 million? Wow! How many years are Mitt Romney and all the crooks on Wall Street going to get?
This is an amazing story and unfortunately, few will ever understand why.
- Claimed 3 million in income and got 2.1 million in the return. Yep - that's how taxes work for the rich.
- 3 IRS employees are supposed to review but no one is coming forward and there are no automated processes in place to see who was checking everything off, yet our government spends TRILLIONS a year. Yep - our government is at its best incompetent, at its worst down right corrupt.
- She was only caught when she reported the debit card the money was accessible through twice. Meaning no one was looking for her, no one was investigating this. She was caught because she either kept trying to get more (don't know how replacing the card would have worked - maybe she said someone else was charging) or because she kept sending up more flags and someone finally looked.
- She got 2.1 million in funds and the best she could do was buy an old van and some other white trash crap. She had the money for less than a few months and already spent more than 100K in crap. Yep - some americans are poor for a reason, some americans are in debt for a reason (our government included).
@frankhank,
This storiy was reported quite a while back, i remember reading about it on this vine. What we see here is the plea and sentencing phase, which does take several court appearances later to happen. there is a pre-liminary hearing or grand jury depending on the county you live in and then lots of pre-trials where possible pleas are discussed in the mean time between the DA and the defendant's attorney, all this depending on different circumstances can take several months, also, you have to wait for the formal discovery to be exchanged betweent he DA and the defendant's attorney as well, (formal discovery = evidence to be used at trial, etc...) Therefore, they would have had to supoena the records from the IRS and wait for them to get off their butts and provide that, so this actually happened pretty quickly from the cases I deal with on a daily basis in the law firm I work for, and if she had not done the plea bargain, we would still be waiting for a trial.!
How dare her file for a tax return when she never paid those taxes. This type if behavior is reserved for the likes of GE who got a tax refund of over 200 million, and not a penny in taxable income. They should have given her the death penalty, as this is clearly an indication of total moral depravity and should be used to set an example. We can't have poor people mimic the behavior of the wealthy and privileged, who do they think they are. Know your place and stay there.
Clearly this chick is an imbecile. It's so funny to me how people that do crap like this actually think they are going to get away with it or think that they are so smart and beat the system. lol efftard.
And lets not forget the $1800 she spent on a 1999 Dodge Caravan. Seriously, if you're going to steal big, then spend big, bitch.
For the idiot who said it was a "union" worker! Honey, I worked for the IRS and they AREN'T unionized in the slightest.
And you should be audited but I doubt you file since you are likely scamming only welfare and food stamps.
Reyes was too dumb to take the money and disappear and she spent her "refund" like George Zimmerman on all the "necessary" things in life like air mattresses and a used $1800 car.
The fault also lies with the 3 who allowed this to go forward since the article says 3 have to sign off on it. Talk about some collusion!
And for you h*ters claiming she was an "illegal" please point it out cuz I've read the story looking for proof and haven't seen any.
The woman scams $2M and buys an air mattress. I guess "Trailer Park Queen" is a goal to some women. Hopefully they'll confiscate her tweezers in prison... those eyebrows are a crime to nature itself.
I hope she developes a, "Unibrow"!
Priorities.......A deep fat fryer? By the size of her she really needed that!
Apparently, shampoo wasn't on her shopping list.
she bought a '99 Dodge Caravan,showing more fiscal responsibility than all off our elected officials,LOL
One less Obama voter! Obama must hurry up to grandfather in another illegal from Mexico to take her place.
She is/was an illegal immigrant and these are the types of greedy criminals our government is forcing us to live near.
Now we ALL get to pay for Ms Reyes' jail, the court trial, the police , the attorneys, the missing money, etc etc etc----all for a useless Hispanic that earned less than 15k a year.
The difference between her and a company is a company has the financial resorces to fight something like this in the courts for years. As for her guilt, well yes she entered a guilty plea but if she had tried to fight it she would have probably gotten a longer sentence.
You are a sick fool.
Domewars, you make a very good point. The sister of a friend of mine was hired by the IRS a good while ago and one of the first things they were told during orientation was to concentrate their efforts on the little guys.. A) There are a lot more of them.
B) They generally can't afford to fight it in court and will just pay up.
Odum...you're the last person who should be accusing someone of being sick with a disgusting photo like that...WTF is THAT all about? oh never mind...I really don't want to know much less care. *rolling eyes*
If she was an elected official in the Federal Government, she wouldn't have to worry about paying this back. Hope she doesn't loose her right to vote, she's the type person who makes a good Democrat. Right,Charlie?
I so agree with you
If, she was Timothy Geithner she would be OK.
Agreed. If she was Timothy Geithner, he wouldn't have paid taxes.
$2.1M and she goes out and buys a 1999 Dodge Caravan, an air mattress, and a deep fat fryer...Some people just don't have ANY imagination.
No imagination OR class!
I wonder if they confiscated the mattress...
exactly. I want to know what Fed auction this will be at....I wanna get me paws on dat '99 dodge with the pimped out hubs, maybe toss that fryer in the back, too....if I'm lucky.
Very poorly written story. Nothing about what happened to the idiots that approved the refund. I should hope they were at lest fired.
Quite to the country. They were promoted, according to government protocol.
They will now be in charge of collecting the tax/penalty from the uninsureds. This is gonna be great!
Huh?
I think the scammer is getting off pretty light and what about the rest of the money she could not have smoked it up in crack already??
Vietnam Vet,
Nobody said nothing about crack!!! It is funny how some one like you a vet should know how it feels to be label..or did you even go....I wonder
She milked the system. Her whole family and life is, "About", milking the system..
Figure it out Americans...!! What they're saying is, "These people are making more money than you and they're ALSO screwing Americans out of money in welfare and whatever else there is."
If you're original American, and born here,... These illegal immigrants are taking more money than you'll ever see as an ORIGINAL AMERICAN!!
It ain't fair!!
Civil disobedience for the original American? Is it time?
ummm original americans??? NONE OF US ARE!!!! The "original" americans were robbed and kicked off their land by "lost" explorers. SMH Perhaps you mean "legal settlers" Oh wait... youre just talking out of your ass. OOPS... Carry on then, IDIOT!
This woman was wrong, she knowingly filed a trumped up tax return, this sentence is appropriate. Now the person who approved the refund, should be fired. So much for checks and balances here.
http://videos2view.net/welfare-vacations.htm
http://video.staged.com/localshops/land_of_the_freebies_home_of_the_enslaved
However I must give her credit. She has the gonads.
Watched a show the other night. Dude swindled 20 mill. Got a year in prison and 6 mo probation.
I would say it does pay.
Just a very small tip of the financial fraud. Multiply this $2.1M times ? Ask your self how did we get to a $14 TRILLION. Research the Federal court system and you will be amazed of the Millions stolen by fraud. Thank you President Obama for policies forming the Financial Fraud Enforcement Task Force.
what a pleb.....
I'd say she got off really easy on all this. Most people would have the book thrown at them and probably would have gotten a much stiffer sentence.
While they're at it, they should fire or sentence the irresponsible folks who OK'd the refund!
I would've gotten as much cash outta that 2.1 million as I could and bounced!
This shows the intelligence level of government workers. She got off very easy and at the expense of the tax payers in Oregon. I hope the person(s) who overrode the system and issued the payment was at least fired.
Actually they recovered 1.9 million of the 2.1 so she only got away with 200K which is chump change compared to what the typical wallstreet crook goes after. Maybe if they actually made them serve the sentence they get we'd have less crooks.
Exactly - so she ends up with like 200K missing and gets 5.5 years while Corzine (the former NJ governor and CEO of Goldman) can't say where 1.2 BILLION is and our government lets him slide.
If stuff like this wasn't true, it would be comical. Our government is all about making examples of the "little people" while their friends skate.
$1,800 in cash to buy a 1999 Dodge Caravan and spending $851 on tires and wheels.
When I roll Ghetto, I roll ghetto in style!!!
Cominform: I believe every low-income family w/children who gets the the earned-income tax credit is ripping off the system. You shouldn't get more back than what you pay in. Example: I know people who have 1 child who don't pay more than a thousand in one year yet get back $3-4,000 a year in refund. My husband & I make $75,000 a year pay over $6,000 a year & hold our breath that we don't have to pay every year!
I am sorry they are low-income but that doesn't give them the right to huge tax returns! Just because you have children doesn't mean you should get large tax returns. The IRS wouldn't even give us credit for our 17-year-old. I call her a dependant wouldn't you?!
Same boat Shalyse, I know a guy who has 5 kids, makes around 25 to 28K and gets back 5-8K in refund along with food stamps, day care, earned income ect. and he brags about it! My CPA stated it is not uncommon. whats wrong with this country?
This is whats wrong.... well part of it anyway
http://video.staged.com/localshops/land_of_the_freebies_home_of_the_enslaved
http://videos2view.net/welfare-vacations.htm
Also corrupt politicians and a Government that won't listen to it's citizens.
You can't have it your way (says uncle Sam) have it my way.
To a large degree, the federal income tax system has become an income redistribution program. I'm ok with helping the poor and needy, but it should be done with Medicaid and other existing aid programs.
The bookkeeping system used by the federal government is shameful. If a business kept its books like the federal government does, the owners would be thrown in jail.
@shalyse....of course the reason they have so many damn kids is so they CAN get such a large refund. In addition to the monthly checks for each kid. Heck, for the right price the health clinic will say your kid has asthma and so now you can collect SSI for the "disability" of having asthma. Go figure.
No, you cant, I know someone with asthma and they were denied disability for it!
1999 caravan, how extravagant!!!
What worries me is how this lady who clearly isnt tech savvy was able to get away with this, wonder how many professional thieves are doing this but aren't caught? Remember this is the peoples money and we the taxpayer (seems there is fewer of us each year) have to make up for fraud like this.
Hmm, wonder if the sales of Turbo Tax will be going up anytime soon?
She paid $1500. for the van + $851. for new tires and wheels, For that same $2351. she could have bought something way better and didn't need tires! Geez.. Its a wonder she even got this far.
I wonder why she did not purchase a tamale steamer?
Looks like a fine upstanding and average illegal alien. I am sure Obama will give her a pass and a new green card.
She only got caught because she reported it lost/stolen. Amazing!!!
Wait a minute, this is Oregon. Aren't people making less than 15k entitled to 2.1 million in assistance there?
Yep thats the crazy thing............She had every piece of luck on her side...besides reporting it stolen........If she had not done that.........she could be in CanCun by now.....moving the little umbrella over to the other side of the Glass!!
At least she tried. It didn't work, she may needs training with our political in goverment, they do that all the time.
Actually it DID work, she only got caught because she called the card in lost/stolen TWICE which made the bank think something was amiss. So possibly, she could have gotten away with it for a good while, and with that kind of money she should have up and moved.
Then again looking at her purchases, I don't think shes a real bright one. I mean don't go out and buy a Ferrari but a 12 year old junker with new tires? lol.
However, the "agents" that needed to confirm this should pay a fine and or get canned for simply not doing their jobs. Just makes you think how many times daily people just do things to not have to do any work. Honestly, how long would that have taken to figure out it was bogus if they actually looked at it?
Going out and buying flashy cars and expensive jewelry etc. is what gets most people like her caught. She was smart not to buy big ticket items, but she wasn't too smart in reporting the card lost or stolen twice.
The idiot that removed the fraud flag should be investigated to see if that person knew the perpetrator and should lose their job regardless of what is discovered.