Pair pleads guilty to cheating IRS out of $89,000

EUFAULA – A local funeral home employee recently pleaded guilty to helping defraud the IRS out of $89,000 by selling personal information of deceased individuals.

Frederic Leon Holland of Eufaula pleaded guilty in federal court on two counts - conspiracy to defraud the United States and aiding and assisting in the preparation of false and fraudulent individual income tax returns - according to Sue McKinney of the U.S. Attorney’s Office in Macon, Ga. Valorie Lynn Renfroe, who purchased the information from Holland, also pleaded guilty to the same counts. They are both awaiting sentencing in U.S. District Court. A date for their sentencing has not yet been set.

Holland, an employee of Kent Funeral Home, did not wish to comment when contacted by The Eufaula Tribune. Donna Kent of Kent Funeral Home asked that The Tribune contact Holland’s attorney, Catherine Leek. She could not be reached for comment.

According to the indictment that was filed Feb. 13 in U.S. District Court, Renfroe was hired by taxpayers to prepare income tax returns while she worked at a Columbus business.  The indictment states she charged clients a percentage of the refund clients received, meaning she could charge more when her clients received higher refunds.

According to the indictment, Holland and Renfroe met in 2003 when Holland retained Renfroe to prepare his income tax return. The indictment states that they later made an agreement where Holland agreed to obtain personal information of deceased persons’ names, dates of birth and Social Security numbers in exchange for payment from Renfroe. The indictment states that Holland gave personal information of more than 30 deceased individuals to Renfroe between 2003 and 2004. Renfroe used the information and placed the false information on 23 tax returns. The indictment states that most of the clients did not know their returns contained false information.

“As a result of the fraud, deceit and dishonesty by defendants Renfroe and Holland, the Internal Revenue Service suffered a monetary loss in excess of $89,000,” the indictment states.

Many of the forms filed with the IRS included false dependents, false child care or tax credits and false earned income credits.

According to the Columbus Ledger-Enquirer, both Holland and Renfroe could serve up to eight years in prison. They have both agreed to repay their share of the money and are currently out on bond until their sentencing.

Patrick Johnston is the managing editor of The Eufaula Tribune.