Cedar Rapids woman to serve 5 years for false tax returns

CEDAR RAPIDS - A Cedar Rapids woman who filed fake tax returns for herself, family and friends for more than $380,000 in refunds was sentenced Tuesday in U.S. District Court to five years and one month in federal prison.

Gwendolyn S. Murray, 34, pleaded guilty in June to one count of theft of government property and one count of aggravated identity theft.

In a plea agreement, Murray admitted to filing more than 150 false tax returns over three years, using family members' and friends' information. Some knew she was filing on their behalf. Others did not. But none of them were entitled to the refunds Murray received, authorities said.

She also admitted in the plea agreement to stealing the identity of one woman, using her Social Security number, name and signature, which garnered Murray a $6,000 refund.

Ninety-four false tax refunds garnered $388,754 in a tax scheme that lasted from April 15, 2010, through April 15, 2013, court documents show.

Murray submitted over $750,000 in false tax claims, but not all were accepted or paid before she was indicted.

IRS Special Agent John Nunez said Wednesday this was a significant scheme. Murray wasn't a tax preparer but had enough knowledge to increase the refunds, he said.

U.S. District Chief Judge Linda Reade took into consideration Murray's previous convictions.

Assistant U.S. Attorney Tony Morfitt noted in his sentencing document that Murray has 31 convictions. Many are for driving offenses, but six are for theft and three are for forgery.

Morfitt argued against a lower sentencing, as requested by the defense, saying Murray repeats the same criminal behavior, even when convicted. A serious penalty is warranted to deter future crimes, he said.

Murray originally was indicted on 20 counts of filing false claims and aggravated identity theft. Prosecutors dismissed the other counts at sentencing in accordance with the plea agreement.

Reade ordered Murray to pay the IRS $386,515 in restitution. She will serve three years of supervised release after her prison term.

Murray must surrender to the U.S. Marshals Service on Nov. 3 to start her sentence.