BALTIMORE, MD — A Maryland woman has been indicted by a federal grand jury on charges of tax fraud, theft of government funds, and money laundering after allegedly seeking more than $1.1 million in fraudulent IRS refunds.
Kendra Nicole Scarborough of Oxon Hill was charged in connection with a scheme that reportedly took place between December 2019 and March 2020. According to the indictment, Scarborough prepared and filed false federal tax returns that included fabricated withholdings and nonexistent payments to generate large refunds.
The indictment states that the IRS disbursed more than $412,000 to Scarborough as a result of one of the allegedly fraudulent returns.
Scarborough is charged with three counts of aiding and assisting in the preparation of false tax returns, each carrying a maximum sentence of three years in prison. She also faces up to 10 years for theft of government funds and up to 20 years for money laundering.
In addition to prison time, Scarborough could face supervised release, restitution, and financial penalties if convicted.
The indictment was unsealed late last week and follows an investigation led by federal authorities into the fraudulent refund scheme.
Scarborough has not yet entered a plea in the case.