Des Moines, IA- An Ottumwa man and woman have been sentenced to prison on multiple fraud and tax-related charges.
47-year-old Thein Maung was sentenced Friday, September 29th, to 12 years in prison after pleading guilty to 49 fraud- and tax-related charges. 21-year-old Phyo Mi, of Ottumwa, was sentenced to 9 years in prison after a jury convicted her of 16 fraud-related charges.
In all, the two’s fraud resulted in nearly $4 million in losses to the Internal Revenue Service, Iowa Workforce Development, and numerous citizens.
According to court documents, for several years Maung and Mi ran a fraudulent tax preparation business out of their family’s home in Ottumwa. In exchange for a fee, the two would prepare and file their customer’s tax returns. Maung and Mi primarily catered to immigrants and refugees who worked at meatpacking facilities in Iowa, and who had little to no ability to read, write, or speak English.
Without their customer’s knowledge or approval, Maung and Mi included fraudulent items on their customers’ federal tax returns, such as false claims for residential energy credits, business-expense deductions, or moving-expense deductions for members of the Armed Forces.
It is estimated that from 2018 to 2022, Maung and Mi received over $200,000 in cash fees from their customers. In addition, on their customers’ returns, Maung and Mi sometimes directed that portions of the fraudulent refunds be sent to financial institution accounts accessible to Maung and Mi. As a result, Maung and Mi obtained nearly $50,000 in fraudulent tax refunds.
Maung and Mi also offered to help customers with applying for unemployment benefits from Iowa Workforce Development. Without their customers’ knowledge or approval, Maung and Mi submitted materials to Iowa Workforce Development directing that their customers’ benefits payments be sent to financial institution accounts that Maung and Mi had access to.
Maung and Mi obtained nearly $70,000 in fraudulent unemployment insurance benefits payments be sent from Iowa Workforce Development to their accounts, instead of to eligible claimants.
Maung and Mi also offered to help customers with applying for unemployment benefits from Iowa Workforce Development. Without their customers’ knowledge or approval, Maung and Mi submitted materials to Iowa Workforce Development directing that their customers’ benefits payments be sent to financial institution accounts that Maung and Mi had access to. Maung and Mi obtained nearly $70,000 in fraudulent unemployment insurance benefits payments be sent from Iowa Workforce Development to their accounts, instead of to eligible claimants.
At sentencing, Chief United States District Court Judge Stephanie M. Rose described Maung and Mi’s fraud as being elaborate and extensive, involving layers of subterfuge, and victimizing hundreds of vulnerable immigrants and refugees with little education and limited English fluency.
Following their prison terms, Maung and Mi will be on supervised release for three years. There is no parole in the federal system.
