On December 11, 2018, in the Central District of California, Cody Jannetti pled guilty to misusing a U.S. Treasury symbol in association with a false release of levy. Jannetti was initially charged with the offense on November 1, 2018. November 8, 2018, in the Middle District of Florida, former Internal Revenue Service (IRS) employee Dawn Avalle pled guilty to conspiracy to defraud the United States and making and subscribing to a false tax return. Avalle was initially charged with the offenses on October 24, 2018.

According to the court documents, Jannetti owed the Internal Revenue Service (IRS) approximately $107,000 in delinquent taxes. In late 2016, the IRS issued a levy on Jannetti’s income to his employer, Loan Depot.

Jannetti manipulated an IRS Release of Levy on his work computer and forged the signature of an IRS employee. Additionally, Jannetti changed the fax header to note that it had been sent from the IRS, when Jannetti had faxed it to himself from a Federal Express office. On or about January 5, 2017, Jannetti then faxed the false IRS levy release to Loan Depot in order to convey the impression that his tax lien was released and that he could have access to his income.

Jannetti could face a maximum statutory sentence of one year in prison, plus a fine of up to $10,000 for each use. Sentencing has been scheduled for February 25, 2019.

Source:  The facts in this case narrative come from the following publicly available documents: C.D. Cal. Information filed Nov. 1, 2018; C.D. Cal. Plea Agr. filed Nov. 1, 2018; C.D. Cal. Crim. Docket as of Dec. 12, 2018.