Tax preparer admits swindling feds, state

By PAUL WALSH, Star Tribune

Last update: September 10, 2008 - 3:42 PM

A 36-year-old woman admitted in court today that while she ran an H&R Block Tax Office in Brooklyn Park she prepared nearly 250 federal and state income tax returns that made false claims for refunds of hundreds of thousands of dollars.

Paulina A. Mohn, of Gary, Ind., pleaded guilty today in federal court in Minneapolis to six counts of false claims against the United States and one count of aggravated identity theft.

According to Mohn's plea agreement:

From Jan. 1, 2006, through May 2007, while working as an H&R Block branch manager and tax preparer in a Wal-Mart in Brooklyn Park, she prepared at least 125 federal individual income tax returns for the 2005 and 2006 tax years on behalf of others that made false claims for refunds. Her indictment says those claims totaled at least $600,000.

In addition, Mohn prepared and filed at least 115 false Minnesota income tax returns containing at least $149,000 in false state claims for refunds.

Mohn carried out the scheme, the plea agreement states, by using fraudulent W-2 Forms containing false statements of income and tax withholding and by adding fictitious dependents to the taxpayer's return, both of which falsely inflated the claimed refund. All of the federal and state returns were electronically filed.

In addition, Mohn admitted that she did knowingly use without lawful authority the identification of another person on five separate occasions between March 2, 2006, and Feb. 2, 2007 in connection with the filing of tax returns. In each instance, a victim's name and Social Security Number were used to commit wire fraud.

Mohn faces a maximum penalty of five years in prison on each false claims count. She also faces a mandatory consecutive sentence for conviction on the aggravated identity theft count.

A date for sentencing has yet to be determined.

Paul Walsh • 612-673-4482

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