Federal grand jury charges 5 in Fayette County with conspiracy to submit fraudulent tax returns

bestep@herald-leader.comMay 22, 2014 

Five people took part in a conspiracy in Fayette County to submit fraudulent tax returns seeking payments totaling more than $2.5 million, a federal grand jury charged Thursday. Those named in the 17-count indictment were David L. Pierce, Dwayne Ray Smith, Timothy Richard Smith, Stephen Lane Woodrum and Joyce Ann Estes.

In addition to conspiracy, they were charged with aiding each other in transmitting false claims and with possessing and using the identification of another, though not all five were charged in each count.

In most cases cited in the indictment, Pierce is accused of submitting false refund claims in the names of other people.

The indictment noted some claims were paid, but did not indicate that others were. The alleged conspiracy took place from April 2009 to July 2010.

In one case, Smith wired $200,000 to a Las Vegas casino after receiving an alleged fraudulent payment, the indictment charged.

The maximum sentence on the various charges would total more than 30 years.

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