The Oregon Department of Revenue has disciplined four employees over their role in approving a fraudulent $2.1 million tax refund. The announcement Wednesday comes a day after the Salem woman who claimed the cash was sentenced to five-and-a-half years in prison.
When Krystle Reyes said the state of Oregon owed her a whopping $2.1 million…well, not only was that a whopper, but the tax agency's internal safeguards completely failed.
The Salem woman received the money on a debit card. She spent some of it but claimed, twice, to have lost the card. That's when the commercial issuer of the debit card alerted the state of the possible fraud.
An internal audit by the Department of Revenue found that the agency's policies should have prevented Reyes from getting the money. In fact, her tax return was flagged for additional processing.
But the agency's review found that some employees failed to follow department policy and mistakenly approved the fraudulent return. The two managers and two front-line staff involved in the case still have jobs, but they’ve been disciplined in a variety of ways. One was demoted.
Copyright 2012 Northwest News Network
On the Web:
Oregon Department of Revenue internal audit: http://www.scribd.com/doc/101062073/Revenue-Internal-Audit