Ex-IRS worker sentenced to prison, restitution in Fresno identity theft, tax fraud case

A former Fresno IRS employee who also worked as a private tax preparer was sentenced Thursday for 13 felonies related to identity theft and wire and tax fraud.

Deena Vang Lee received four years and six months in prison and must pay a $191,597 fine, according to a release from the Internal Revenue Service.

Lee was arrested in 2019 and convicted in January on three counts of wire fraud, two counts of aggravated identity theft, five counts of preparing and presenting false and fraudulent returns, and three counts of making and subscribing a false and fraudulent tax return.

The crimes occurred from 2012 through 2016, while Lee was working as a tax preparer.

During the trial, prosecutors argued that Lee submitted to the IRS materially false information that she put on customers’ tax returns without their knowledge or consent. She also obtained the IDs of multiple people and listed them as child care providers on customers’ tax returns. Again, without knowledge or consent.

Lee also under-reported her own income in 2013, 2014 and 2015, according to the IRS.

“This defendant was familiar with the tax laws and purposefully defrauded the United States, and even after overwhelming evidence was presented to the jury, she continued to deny her conduct,” said U.S. Attorney Talbert.

The sentencing shows the seriousness of the Vang Lee’s conduct, said Darren Lian, the Special Agent in Charge with IRS Criminal Investigation’s Oakland Field Office.

“IRS Criminal Investigation is sworn to protect the tax system,” he said in the statement.

“That includes uprooting unscrupulous tax return preparers and bad actors from within the agency.”