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Mailing Address:
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5th Floor, The Law Building
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United States Attorney's Office |
Telephone (616) 456-2404
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330 Ionia Avenue, NW | Post Office Box 208 |
Fascilmile (616) 456-2408
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Grand Rapids, Michigan 49503 | Grand Rapids, MI 49501-02008 |
Contact: 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 |
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