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Fake Rappers Exposed in Biggest Tax Fraud Bust in U.S. History

  • 14 June 2016
  • Author: Alexander Carr
  • Number of views: 2417
Fake Rappers Exposed in Biggest Tax Fraud Bust in U.S. History

Tax fraud comes in many shapes and sizes. In fact, the IRS estimates that 17 percent of all taxpayers fail to comply with tax laws in one way or another. Cash-intensive businesses and service industry workers are the worst offenders. The IRS claims that waiters and waitresses underreport their cash tips by an average of 84 percent.

But then there’s tax fraud on a much grander—and more bizarre—scale than simply not counting change. One of the biggest tax fraud cases in U.S. history was recently reported out of Florida, one that proves sometimes people can get away with nearly anything.

Five men running GroundUp111, a start-up rap recording label were recently convicted. The problem? The recording label was bogus. Instead of recording music, the company leaders spent money on cars, trips, clothing and more than $1 million on illegal drugs, all while filing more than $108 million worth of false income tax returns. It is believed the IRS actually paid out more than $28.2 million in fraudulent refunds to the group.

Perhaps the most shocking part of the story is that the men might have continued to get away with the tax fraud if an armed home invasion hadn’t exposed the lies. “Investigators found wads of cash, more than 500 debit cards in other people’s names, expensive jewelry, watches, shoes, clothing and other assets in the house,” reports the Sun Sentinel.

During the trial, representatives from the IRS admitted that many of the stolen identities belonged to average U.S. citizens and resident workers and were used to fraudulently obtain tax refunds. It’s yet another indication the IRS needs to step up its fight against tax fraud, which not only hurts the IRS but affects millions of honest taxpayers each year.

If you’re concerned about your tax refund getting into the hands of someone else, contact us to find out what you can do to protect yourself.  

Image Copyright: pkphotograhy / 123RF Stock Photo

Categories: Blog, General
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