Tax Fraud Scheme Exposed: Georgia Woman Pleads Guilty to Falsifying Documents and Obtaining Over $330,000 in Refunds

A Macon, Georgia woman has admitted to committing a massive tax fraud scheme, falsifying documents and obtaining over $331,758 in refunds from the Internal Revenue Service (IRS). Lonnise Janelle Andrews, 43, pleaded guilty to three counts of tax-related crimes before U.S. District Judge Marc T. Treadwell on September 11.

The Scheme

According to court documents, Andrews created a fake business, claiming hundreds of non-existent employees and falsified IRS tax forms for herself, her father, and the fictional company, Andrew Harris Corbin (AHC). The scheme was designed to obtain refunds and credits worth over $3.5 million from the IRS.

How the Scheme Worked

Andrews used a tax preparation website to generate fake Forms 1099-MISC and 1099-R, which led the IRS to issue her a refund check for $165,245 that she was not entitled to.
She also filed false Forms 941 and 7200, claiming AHC had 957 employees and paid over $1.4 million in wages, tips, and other compensation.

Investigation Reveals

AHC never filed an income tax return, had no employees, and was not eligible for refunds or credits.
Andrews’ father picked up a refund check worth $25,978.83 at a UPS mailbox set up by Andrews, but the check was later found in her bedroom during a search.

Consequences

Andrews faces a maximum sentence of 13 years in prison and fines of up to $600,000. She has agreed to pay restitution for the entirety of tax refunds listed in the indictment, totaling $331,758. Sentencing is scheduled for January 4, 2024.

Reaction from Authorities

U.S. Attorney Peter D. Leary stated that those who engage in tax refund schemes and fraud will be held accountable for their crimes. “We will seek justice on behalf of taxpayers,” he said.
IRS Criminal Investigation Acting Special Agent in Charge Demetrius Hardeman added, “Lonnise Andrews took responsibility today for fraudulently obtaining tax refunds and Employee Retention Credits when she pled guilty to these crimes. IRS Criminal special agents will continue investigating those who engage in breaking tax laws on behalf of honest taxpayers.”

Investigation and Prosecution

The case was investigated by the IRS and is being prosecuted by Assistant U.S. Attorneys Elizabeth Howard and Amy Helmick.