KANSAS CITY, Mo. – A Kansas City, Missouri, man has been convicted in federal court of a scheme to obtain more than $2.5 million in fraudulent federal income tax refunds, in part by stealing his children’s identities.
Michael A. Kheop, 52, was found guilty at the conclusion of a one-day bench trial before U.S. Chief District Judge Beth Phillips of three counts of making false claims, two counts of mail fraud and one count of aggravated identity theft.
According to evidence introduced in the trial, Kheop created a fraudulent business entity in 2013. He then created fraudulent W-2 forms that contained false income and withholding in order to fraudulently claim refunds in his own name and using his three minor children’s names.
Kheop filed 12 fraudulent claims for refunds on behalf of his three minor children for tax years 2014 through 2017. He filed three fraudulent claims for refunds in his own name for tax years 2015 through 2017.
By filing the 15 fraudulent claims for refunds, Kheop attempted to defraud the government of $2,591,706. The U.S. Treasury actually paid Kheop $24,322.
The false claims convictions are specifically related to three tax returns Kheop filed in 2018, one in his own name and two in the names of his minor children. The mail fraud convictions are specifically related to refund checks mailed to Kheop’s post office box. The aggravated identity theft conviction is specifically related to the use of his minor child’s name and Social Security number on a federal income tax return.
Under federal statutes, Kheop is subject to a sentence of up to 55 years in federal prison without parole for the false claims and mail fraud convictions, plus a mandatory consecutive sentence of two years in federal prison without parole for aggravated identity theft. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Kathleen D. Mahoney and Bradley Cooper. It was investigated by IRS-Criminal Investigation.