AG Gansler Obtains Guilty Plea from State Employee for tax fraud
Social Services caseworker claimed client's child as dependent
Baltimore, MD (March 12, 2012) - Attorney General Douglas F. Gansler announced today that former state employee Crystal T. Banks, 31, of Cambridge, pleaded guilty in Anne Arundel County Circuit Court to three counts of filing fraudulent income tax returns. The Honorable Judge Paul A. Hackner sentenced Banks to three years of incarceration, all of which was suspended. Banks was also ordered to pay restitution of $1,476.00 to the state during her probation.
"This case demonstrates that state employees who defraud the people of Maryland will be held accountable," said Attorney General Gansler. "The vast majority of Maryland's civil servants are honest, hardworking taxpayers who applaud our efforts and often assist in combating fraud and corruption."
Banks had previously been employed as a caseworker with the Dorchester County Department of Social Services. An investigation was launched after Banks' supervisors received reports that Banks was filing a false tax return claiming the child of one of her Social Services clients as a dependent.
The investigation revealed that Banks claimed the child as a dependent on her income tax forms for tax years 2008, 2009 and 2010, thereby lessening her tax obligation and resulting in a larger refund than was due. Banks later admitted to the fraudulent filings.
Upon making the announcement, Attorney General Gansler thanked Assistant Attorney General Megan Limarzi for her work on the case, which was originally referred by the Inspector General's Office at the Maryland Department of Human Resources. The investigation was conducted by the Attorney General's Criminal Division and the Maryland State Police.