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FM NEWS 101 KXL

Employees Disciplined For $2.1 Million Tax Refund


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July 25, 2012, 11:36 am


Four employees at the Oregon Department of Revenue have been disciplined after a Salem woman swindled them out of $2.1 Million.  The workers have been demoted or otherwise disciplined after an internal audit into the fraudulent tax refund. 

The workers were in charge of manually reviewing tax returns that were flagged for errors or fraud.  The audit found they did not follow policy.  Two of them can no longer approve refunds and instead only high-level officials can now sign off on tax refunds that appear excessive. 

"Several internal controls weren't working as they should," says Department of Revenue Director Jim Bucholz.  "We're making immediate changes to our processes so we can be confident this won't happen again."

25-year-old Krystle Reyes of Salem was arrested for computer crime and aggravated theft.  She claimed she earned over $3 Million in 2011.  Reyes pleaded guilty to tax evasion yesterday and was sentenced to five and a half years behind bars.

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