Idaho couple among five charged in multi-state $57 million tax fraud scheme
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KUNA — An Idaho couple is facing federal charges after prosecutors say they helped orchestrate a sweeping tax fraud scheme that sent more than $57 million in fictitious financial instruments to the IRS.
Andrea and Kent Shannon of Kuna are charged with conspiracy to commit wire fraud, wire fraud, and filing false tax returns, according to an indictment unsealed in federal court in Boise. Kent Shannon also faces a money laundering charge.
They are among five defendants accused of submitting fraudulent individual and trust tax returns that claimed millions of dollars in refunds to which they were not entitled. The indictment alleges the Shannons and co-conspirators in Illinois and Florida attempted to trick the IRS into issuing the refunds by mailing more than 100 fake checks, money orders, and payment vouchers that falsely appeared to show tax payments totaling roughly $57 million.
According to prosecutors, the scheme operated between 2023 and 2024 and involved the Shannons; Brittany Plahm of Frankfort, Illinois; Monika Skinger of Chicago; and Sherita Chandler of Port St. Lucie, Florida.
The indictment claims Andrea and Kent Shannon used part of the false refunds to buy high-end vehicles, including a $90,000 Cadillac Escalade and a $144,000 GMC Sierra 3500.
All five defendants face up to 20 years in federal prison if convicted of conspiracy to commit wire fraud. Andrea and Kent Shannon could each receive an additional 20 years for every wire fraud charge and up to five years for each false claim count. Kent Shannon faces up to 10 years on the money laundering charge. Actual sentences will be determined by a federal judge under U.S. Sentencing Guidelines.
Federal officials have issued a reminder that abusive tax schemes and refund scams—often marketed online as quick paths to avoid taxes—can result in felony convictions, prison time, and heavy fines. They advised taxpayers to be cautious of promoters who promise large refunds, push trust-based schemes, or encourage filing false returns.
The IRS offered several tips to avoid scams this filing season, including:
- Ignore social media posts claiming you can avoid taxes by placing money in a trust.
- Be wary of preparers who promise unusually large refunds or base fees on refund size.
- Never sign a blank return and ensure refunds go directly to your own account.
- Avoid links or attachments from unknown senders claiming to represent the IRS.
- Review IRS Publication 3995 before engaging with any tax scheme promoter.