Grasonville woman pleads guilty to $1.1 million fraud scheme – InsuranceNewsNet

BALTIMORELinda Pilantof Grassonvillepleaded guilty 3rd of March cable fraud, Social Security fraud, tax evasion and aggravated identity theft in schemes to defraud his employer, fraudulently obtain disability insurance benefits and evade more than $225,000 taxes, including concealing income as part of a bankruptcy filing. As a result of these crimes, Pylant admits to illegally obtaining more than $1.1 million.

The guilty plea was entered by United States district attorney of MarylandErek L. Barron; Special Agent in Charge Thomas J. Sobocinski from Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Darrell J. Waldon from Internal Revenue Service – Criminal investigation, Washington, D.C. Field Office; and Special Agent in Charge Michael McGill from Social Security AdministrationInspector General’s OfficePhiladelphia Field Division.

wire fraud system

According to his guilty plea, from 2012 to approximately July 2020Pylant worked for a washington d.c., professional association as an office administrator. His responsibilities included bookkeeping and other accounting duties, depositing checks, managing accounts receivable, accounts payable and other administrative duties.

As detailed in his plea agreement, in October 2017, Pylant opened a bank account, allegedly for the trade association, of which she was the sole signatory, and had the bank statements sent to her home. From October 2017 until July 2020Pilant filed more than $700,000 in cheques, primarily from trade association members and insurance companies, which were intended for the benefit of the trade association. Pylant also transferred over $70,000 trade association funds from a Pay-Pal account to the account it has opened in the name of the trade association. In addition, Pylant admitted that she issued trade association checks payable to herself and a trade association contractor, which she signed, falsifying the names of two company executives. trade association. Pylant then deposited the forged checks into other accounts she controlled.

Pylant spent more than $175,000 funds stolen from a local bingo hall, used more than $100,000 for retail, restaurant and grocery expenses and withdrew more than $200,000 in liquid. Thanks to the fraudulent scheme, Pylant obtained more than $900,000.

Social Security and disability fraud

At August 18, 2015Pilant asked Social Security Disability Insurance payments, failing to disclose that she worked and earned income from the professional association. SSDI payments are only made as long as recipients are unable to work and/or their income is below a certain amount. From 2018 to July 2020Pylant illegally received and spent more than $75,000 in SSDI payments to which she was not entitled.

Additionally, from approximately 2014 to 2017, Pylant provided false information to a private insurance company in order to fraudulently collect disability insurance payments. Pylant has consistently failed to disclose his professional association earnings, as well as his SSDI payments. As a result, Pylant fraudulently received more than $140,000 in disability insurance payments from the private insurance company.

Tax evasion and bankruptcy fraud From 2014 to July 2020Pilant caused

his professional association salary payments must be paid through a non-existent entity, LPSR, Inc.that Pylant created but did not register with the State of Maryland nor the Internal Revenue Service. Pylant also established LPSR as a vendor in the trade association’s computer system, with no federal tax ID and no 1099 reporting status. professional association to pay LPSR more than $100,000. Meanwhile, Pylant also made sure the trade association didn’t issue 1099s. IRS report form for LPSR. Because Pylant also made false statements to the Social Security Administrationincluding failing to disclose that she was employed by the trade association, she avoided paying taxes that would have been owed on her SSDI payments.

As detailed in his plea agreement, Pylant submitted false information during three Maryland bankruptcy proceedings filed on February 3, 2016in December 2020and in January 2021. Specifically, Pylant’s petitions failed to list her taxable trade association income that was paid through LPSR, falsely asserted that she had no earned income, and were not required to file tax returns, failed to list the business names she had used, including LPSR, and falsely stated that her employment status had not changed since February 2016.

Pylant admitted that his tax evasion offenses caused a tax loss to United States at least $233,547 and it will be required to compensate the government for this amount.

As stated in his plea agreement, Pylant will also be required to compensate the full amount of the actual losses caused by his fraud schemes, which is at least $1.1 million. Pylant will also forfeit property directly attributable to fraudulent offenses, substitute property and/or a monetary judgment equal to the value of the property derived from the offense, which is at least $950,000.

Pylant faces a maximum sentence of 20 years in prison for wire fraud; a maximum of five years in prison for social security fraud and tax evasion; and a mandatory two-year federal prison sentence, consecutive to any other sentence imposed, for aggravated identity theft.

U.S. District Judge Richard D. Bennett scheduled the sentencing of 11 a.m. September 8.

Barron congratulated the FBI, IRS-CI and SSA OIG for their work in the investigation. He thanked the assistant we Attorney Harry M. Gruber and special assistant we Attorney Michael F. Daviowho are pursuing the case.

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