SC woman bought herself ‘luxuries’ with money stolen from taxpayers, prosecutor says
A Columbia woman is going to prison after stealing hundreds of thousands of dollars from taxpayers, the U.S. Attorney’s Office said.
Alice Felder-Lucas, 58, used the money she got from filing a false tax return to buy “luxuries for herself,” U.S. Attorney Corey Ellis said in a news release.
Those luxuries included a new house and car, according to Ellis’ office.
But Felder-Lucas won’t get to enjoy them after being sentenced to more than three years in federal prison for false claims against the U.S. and theft of governmental funds, according to the release.
Felder-Lucas filed fraudulent IRS Form 1040 tax returns petitioning for a tax refund of $708,190, and supported that claim by providing a false IRS Form 1099 claiming millions of dollars of income and withholdings, the U.S. Attorney’s Office said.
The tax return was flagged by the IRS for potential fraud, but the funds were erroneously released to her, according to the release.
The IRS was able to “claw back approximately $30,000 of the refund once the fraud was discovered,” the U.S. Attorney’s Office said, but Felder-Lucas had already transferred most of the money to other bank accounts.
“To steal from the Government is to steal from every taxpaying citizen in America,” Ellis said. Felder-Lucas “stole from the American people and spent that money on luxuries for herself. She deserves to go to prison, and I appreciate our partners with the IRS for making this case possible.”
During her case, Felder-Lucas filed several documents claiming she was a “sovereign citizen,” according to the release. The sovereign citizen movement is a broad term applying to a loose association of tax protesters, financial scheme promoters and conspiracy theorists. Those typically making the claim say they only answer to their view of law and aren’t subject to any government statutes, rules or proceedings, the U.S. Attorney’s Office said.
The court rejected these claims, according to Ellis.
Felder-Lucas was sentenced to 41 months in prison for each count, with the punishment to run concurrently, according to the release. That will be followed by a three-year term of court-ordered supervision, the U.S. Attorney’s Office said.
There is no parole in the federal system.
Felder-Lucas was also ordered to pay all outstanding tax balances to the IRS and ordered to pay $678,487 in restitution, according to the release.
“Those who might consider preparing false tax returns should be aware of the extremely negative consequences,” said Donald Eakins, Special Agent in Charge of the IRS field office in Charlotte.
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