Man sentenced for IRS fraud scheme that targeted Pine Ridge residents
RAPID CITY, S.D. — A Tennessee man has been sentenced to over six-and-a-half years in prison and ordered to pay restitution after implementing an IRS fraud scheme that targeted Pine Ridge residents.
According to prosecutors, Manaen Dean Matthews conspired with several others to file 1,201 fraudulent income tax returns, making false claims totaling over $3.6 million.
Court documents say Matthews directed Cameron Kills Small, Leslie Lame and John Daly, all of Rapid City, to obtain personal information from individuals living on Pine Ridge by promising them they would receive a large tax refund or other government payments.
Matthews would then use that information to falsely report earnings from self-employment on the tax returns, “when in fact the individuals had not received the income reported on their tax returns and were not due the tax refunds shown.”
After receiving the refunds, Matthews would divert approximately $650 per return for his own compensation, and pay $100 to his co-conspirators for each of the individuals they were able to obtain personal information from.
Matthews has been ordered to pay a total of $523,250 in restitution to the IRS in addition to his prison sentence.