My writing partner and I have been trying to figure out the subject of our next book. We’re thinking about a mystery, and it appears we’ve just had a plot handed to us.
We’re going to open a home study program, catering to low income families. We’ll tell our clients that as a bonus for using our services we’ll prepare their tax returns. All we ask in return is that they assign their Minnesota Education Tax Credits to us. (That credit can’t be assigned, and could only be applied for after the money has been spent.) What could possibly go wrong? Oh, we’re violating a few laws but who will catch us? Anyway, it might make a good plot for a mystery.
I didn’t make this up, though, as the Department of Justice alleges that’s exactly what a Minnesota mother and son did. Carolyn Louper-Morris and William J. Morris, Jr., both of Minneapolis face a 22-count indictment. They’re charged with mail fraud, wire fraud, money laundering, and wire fraud conspiracy. The DOJ alleges that 1,800 took advantage of CyberSutdy 101’s program, and the couple supposedly received $2.4 million from the Minnesota Department of Revenue.
What did the couple do with the money? Well, they did provide over 2000 computers to low-income students…but they apparently forgot to pay K-Mart for the computers. The indictment alleges that the money was partially used for “…$300,000 payment on a home, $74,000 for a new Mercedes SUV and $8,600 for a mink coat, a cashmere and rabbit scarf, and a chinchilla-trimmed hat.” The Minnesota DOR canceled the tax credit for CyberStudy 101 in 2002.
The couple also is alleged to have lied to the Minnesota DOR; the Minnesota DOR asked where the $2.4 million came from and was supposedly told that it was “loan proceeds.”
There is one surprise for me: That this is a case in federal court rather than state court. I would think that if the allegations are true that fraud charges could certainly be filed in state court. But the defendants, like all defendants, are innocent until proven guilty.
By the way, CyberStudy’s website is still open. If you’re interested in their programs you’d better hurry; I suspect they won’t be available soon.
News Story: Pioneer Press, KARE