Delaware News

DOJ Secures Convictions For Two Delaware Women Who Claimed A Combined $114,815 In Fraudulent Tax Deductions

Department of Justice Press Releases | Date Posted: Thursday, June 15, 2023


Navy blue background featuring the Delaware state seal in the center

Two Delaware women have been sentenced to probation and suspended prison time for tax-related crimes after falsely claiming thousands of dollars in itemized deductions on their tax returns and submitting falsified documents during their respective audits. The cases represent the first prosecutions brought under the new initiative between the Department of Justice and the Department of Finance targeting state tax fraud

“These convictions are the result of great work by our prosecutors and our partners in the Division of Revenue,” said Attorney General Kathy Jennings. “Tax fraud isn’t just theft from the government — it steals money from every Delawarean who relies on public services, and from every law-abiding taxpayer who pays their fair share. I want to be crystal clear: no refund is worth a felony. We know how to spot this kind of crime — and rest assured, we will prosecute it.” 

On June 12, Katrina Kaiser, 44, of Bear pleaded guilty to one felony count of Attempted Theft in New Castle County Superior Court and was sentenced to two years in prison, suspended for one year of probation. This case was referred to the DOJ by the Division of Revenue as a result of an audit into Kaiser’s 2021 State of Delaware Individual Resident Income Tax Return in which she claimed $29,190.00 in false charitable deductions.

Kaiser’s plea followed an earlier jury conviction in a similar case. On May 24, a New Castle County Jury convicted Allexea T. Blackwell, 60, of two counts of State Tax Fraud graded as Class E felonies, two counts of Tampering with Public Records in the First Degree, felony Theft, Attempted Theft, and two counts of Offering False Documents for Filing. Blackwell’s conviction followed an investigation that revealed she had claimed $45,600 in false charitable contributions in her 2018 tax filing, and another $40,025 in her 2019 tax filing. When Blackwell’s return was later audited, she submitted falsified documents such as altered bank record and forged letter purporting to be from charitable foundations. Blackwell was sentenced to six years in prison, suspended for one year of probation and 25 hours of community service. 

Both sentences were secured by Deputy Attorney General Louis F. D’Onofrio of the DOJ’s White Collar Crime Unit. The White Collar Crime Unit, part of the DOJ’s Fraud Division, was established by Attorney General Jennings in 2019 and is comprised of a cross-disciplinary team of prosecutors with criminal trial experience,  Fraud Division veterans versed in the technical details of relevant civil and criminal law, and forensic accountants. The investigation was led by Special Investigator David M. Smith of the Division of Revenue’s Criminal Investigation Unit.

image_printPrint


Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.

DOJ Secures Convictions For Two Delaware Women Who Claimed A Combined $114,815 In Fraudulent Tax Deductions

Department of Justice Press Releases | Date Posted: Thursday, June 15, 2023


Navy blue background featuring the Delaware state seal in the center

Two Delaware women have been sentenced to probation and suspended prison time for tax-related crimes after falsely claiming thousands of dollars in itemized deductions on their tax returns and submitting falsified documents during their respective audits. The cases represent the first prosecutions brought under the new initiative between the Department of Justice and the Department of Finance targeting state tax fraud

“These convictions are the result of great work by our prosecutors and our partners in the Division of Revenue,” said Attorney General Kathy Jennings. “Tax fraud isn’t just theft from the government — it steals money from every Delawarean who relies on public services, and from every law-abiding taxpayer who pays their fair share. I want to be crystal clear: no refund is worth a felony. We know how to spot this kind of crime — and rest assured, we will prosecute it.” 

On June 12, Katrina Kaiser, 44, of Bear pleaded guilty to one felony count of Attempted Theft in New Castle County Superior Court and was sentenced to two years in prison, suspended for one year of probation. This case was referred to the DOJ by the Division of Revenue as a result of an audit into Kaiser’s 2021 State of Delaware Individual Resident Income Tax Return in which she claimed $29,190.00 in false charitable deductions.

Kaiser’s plea followed an earlier jury conviction in a similar case. On May 24, a New Castle County Jury convicted Allexea T. Blackwell, 60, of two counts of State Tax Fraud graded as Class E felonies, two counts of Tampering with Public Records in the First Degree, felony Theft, Attempted Theft, and two counts of Offering False Documents for Filing. Blackwell’s conviction followed an investigation that revealed she had claimed $45,600 in false charitable contributions in her 2018 tax filing, and another $40,025 in her 2019 tax filing. When Blackwell’s return was later audited, she submitted falsified documents such as altered bank record and forged letter purporting to be from charitable foundations. Blackwell was sentenced to six years in prison, suspended for one year of probation and 25 hours of community service. 

Both sentences were secured by Deputy Attorney General Louis F. D’Onofrio of the DOJ’s White Collar Crime Unit. The White Collar Crime Unit, part of the DOJ’s Fraud Division, was established by Attorney General Jennings in 2019 and is comprised of a cross-disciplinary team of prosecutors with criminal trial experience,  Fraud Division veterans versed in the technical details of relevant civil and criminal law, and forensic accountants. The investigation was led by Special Investigator David M. Smith of the Division of Revenue’s Criminal Investigation Unit.

image_printPrint


Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.