Seven Charged in $57M Tax Refund Fraud Scheme

A superseding indictment was unsealed yesterday charging an Idaho man and woman and five non-Idaho residents with conspiracy to commit wire fraud, making false claims and money laundering. The conspirators allegedly prepared and submitted false tax returns and fictitious financial instruments to the IRS.

"As alleged, this group of fraudsters participated in a $57 million tax fraud scheme, filing over 100 fictious returns and ultimately receiving more than $8 million in taxpayer dollars from the IRS," said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. "The Fraud Division will continue working vigorously to investigate and prosecute tax fraud schemes like these across the country. Fraudsters should never be allowed to rip off the United States of America."

According to the superseding indictment, from 2023 through 2024, Andrea and Kent Shannon of Kuna, Idaho, Monika Skinger of Chicago, Illinois, Sherita Chandler of Port St. Lucie, Florida, Saule Moshkanova of Roseville, California, Tiffany Nichols of Suwanee, Georgia, and Stacey Rice of Manteca, California, along with unindicted conspirators, allegedly conspired to commit wire fraud by assisting one another in fraudulently claiming refunds in amounts totaling more than $57 million by preparing and submitting false individual and trust tax returns and fictitious financial instruments to the IRS. The conspirators allegedly received more than $8 million from the IRS. Moshkanova, Nichols, and Rice were each charged with one count of conspiracy to commit wire fraud.

Andrea and Kent Shannon, Skinger and Chandler were previously charged with one count of conspiracy to commit wire fraud. Andrea and Kent Shannon were also charged with committing multiple acts of wire fraud, making false claims to the United States and engaging in money laundering by purchasing personal property such as luxury cars with their fraudulently obtained refunds.

If convicted, the conspirators face a maximum penalty of 20 years in prison for the conspiracy charge. Andrea and Kent Shannon face an additional maximum penalty of 20 years in prison for each wire fraud charge and a maximum penalty of five years in prison for each false claim charge. Kent Shannon faces a maximum penalty of 10 years in prison for the money laundering charge.

IRS Criminal Investigation is investigating the case.

Trial Attorney David F. Scollan of the National Fraud Enforcement Division's Tax Section and Assistant U.S. Attorney Brittney Campbell for the District of Idaho are prosecuting the case.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste and abuse within Federal benefit programs.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.