Alice Felder-Lucas was sentenced to more than three years in prison for filing a false tax return and theft of government funds. Felder-Lucas filed a tax return using false 1099 forms that claimed millions of dollars in income. She also listed millions of dollars in expenses.
Although her return was flagged for potential fraud by an IRS agent, she was inadvertently issued a refund of $708,190. By the time the IRS discovered the mistake, Felder-Lucas had purchased a house and car with the ill-gotten funds and only had $30,000 left. In addition to her prison sentence, Felder-Lucas was ordered to pay all outstanding tax balances to the IRS and to also pay $678,486.97 in restitution to the IRS.