Contact:
Assistant United States Attorney Matthew Borgula
(616) 456-2404

FOR IMMEDIATE RELEASE

Grand Rapids, Michigan – March 31, 2004 – United States Attorney Margaret M. Chiara and Mark Kroczynski, Special Agent in Charge, Internal Revenue Service Criminal Investigation, announced that Paul Michael Sedore, 39, of Grand Ledge, Michigan, and currently incarcerated in the G. Robert Cotton Correctional Facility, pled guilty to conspiring to defraud the United States by obtaining a false refund from the Internal Revenue Service (IRS) and to identity theft. On March 15, 2004, Mr. Sedore's aunt, Katherine King, 57, of Lansing, Michigan, also pled guilty to conspiring to defraud the United States by obtaining a false refund from the IRS and to filing a false and fictitious claim with the agency. The guilty pleas were entered before United States District Court Judge Gordon J. Quist.

According to court records, during 1999 through January 2002, Mr. Sedore obtained names of adopted children and others through public records and sent them to Ms. King so that she could prepare false and fictitious tax returns, claiming the earned income credit. False form 1099s, in fictitious business names, were also attached to the returns, supporting their claim for a refund. Over 63 false returns were submitted to the IRS asking for refunds that totaled over $150,000. Although some of the claims were direct deposited or sent to post office boxes, which were controlled by Mr. Sedore and Ms. King, the IRS was able to stop a majority of the refunds from being issued.

Conspiring to defraud the United States by obtaining a false refund from the IRS is a violation of Title 18, United States Code, Section 286. Each Count of conviction carries a maximum penalty of not more than ten years imprisonment and a $250,000 fine. Identity theft is a violation of Title 18, United States Code, Section 1028. Each Count of conviction carries a maximum penalty of not more than 15 years imprisonment and a $250,000 fine. Filing a false and fictitious claim with the IRS is a violation of Title 18, United States Code, Section 287. Each Count of conviction carries a maximum penalty of not more than five years imprisonment and a $250,000 fine. Sentencing is scheduled to take place before Judge Quist on July 13, 2004.

Mr. Kroczynski stated, “Not only did Mr. Sedore and Ms. King take money from a number of honest taxpayers, but they also stole identities from families who should have been experiencing the joy of adoption. The end result was that Mr. Sedore and Ms. King created undue havoc in the lives of these honest taxpayers, as well as violated the Internal Revenue laws.”

Ms. Chiara commended the agents of the IRS Criminal Investigation for their
work in this investigation. The prosecution is being handled by Assistant United States Attorney Matthew Borgula.