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Kansas realtor indicted in $800K tax evasion and COVID loan fraud scheme

U.S. Department of Justice
KMBC
U.S. Department of Justice
SOURCE: KMBC
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Kansas realtor indicted in $800K tax evasion and COVID loan fraud scheme
A Louisburg, Kansas woman has been indicted by a federal grand jury in Kansas City on tax evasion and wire fraud charges involving IRS deception and fraudulent COVID-19 loan applications. Michelle O’Connor is accused of failing to pay hundreds of thousands of dollars in income taxes and submitting dozens of fraudulent applications for federal pandemic relief loans. The indictment says O’Connor owned and operated a real estate company in the metro and owed $300,000 in federal income taxes between 2008 and 2015. The IRS audited her 2008 and 2009 returns in 2011 and found that she had falsely listed tens of thousands of dollars in personal expenses as charitable donations to a church she and her husband created, called the Church of Revelation and Love.The IRS added more than $40,000 to her tax bill as a result of the audit. O’Connor is also accused of trying to obstruct those efforts by filing three false bankruptcy petitions, withdrawing over $250,000 using cashier’s checks, and using business accounts to cover personal expenses.Her total IRS debt grew to nearly $500,000 with interest and penalties by 2020.Alleged COVID-19 relief fraudAccording to the indictment, O’Connor submitted 34 fraudulent applications to the Small Business Administration for loans. She received approximately $300,000 in COVID-19 relief funds. About $115,000 was used to purchase cryptocurrency.She could face five years in prison for tax evasion and up to 20 years in prison for wire fraud.

A Louisburg, Kansas woman has been indicted by a federal grand jury in Kansas City on tax evasion and wire fraud charges involving IRS deception and fraudulent COVID-19 loan applications.

Michelle O’Connor is accused of failing to pay hundreds of thousands of dollars in income taxes and submitting dozens of fraudulent applications for federal pandemic relief loans.

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The indictment says O’Connor owned and operated a real estate company in the metro and owed $300,000 in federal income taxes between 2008 and 2015.

The IRS audited her 2008 and 2009 returns in 2011 and found that she had falsely listed tens of thousands of dollars in personal expenses as charitable donations to a church she and her husband created, called the Church of Revelation and Love.

The IRS added more than $40,000 to her tax bill as a result of the audit.

O’Connor is also accused of trying to obstruct those efforts by filing three false bankruptcy petitions, withdrawing over $250,000 using cashier’s checks, and using business accounts to cover personal expenses.

Her total IRS debt grew to nearly $500,000 with interest and penalties by 2020.

Alleged COVID-19 relief fraud

According to the indictment, O’Connor submitted 34 fraudulent applications to the Small Business Administration for loans.

She received approximately $300,000 in COVID-19 relief funds.

About $115,000 was used to purchase cryptocurrency.

She could face five years in prison for tax evasion and up to 20 years in prison for wire fraud.