Former state worker sentenced for tax fraud

January 31, 2007|By Matthew Dolan | Matthew Dolan,Sun Reporter

A former state worker from Harford County received a 15-month prison sentence yesterday in federal court for tax fraud for using personal information from foster children to file for refunds.

Clarenth Miles, 31, of Edgewood, had earlier pleaded guilty to conspiring to defraud the Internal Revenue Service.

U.S. District Judge William M. Nickerson also ordered Miles to pay restitution to the IRS in the amount of $102,054 and to pay more than $35,000 to two banks that issued pre-refund loans based on fraudulent tax returns.

The investigation revealed that Miles, her husband and a friend filed false federal individual income tax returns seeking refunds totaling more than $200,000.

The IRS issued more than $100,000 in tax refunds as a result of the conspiracy.

Miles had been employed by the Maryland Department of Social Services in Baltimore and had access to the files of foster children.

Prosecutors said she stole the identification of several foster children and provided the identity information to a co-defendant.

Both women filed false tax returns in the names of the foster children or falsely listed the children as dependents, according to the statement of facts in the case.

The friend and Miles' husband were also charged, pleaded guilty and received prison terms.

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