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July 26, 2018

IRS Employee Pleads Guilty to Making False Statements

On May 31, 2018, in the District of New Jersey, Internal Revenue Service (IRS) employee Chandra Porter pled guilty to one count of making false representations and documents in violation of Title 18, United States Code 1001. Porter was previously charged with the offense on June 13, 2017, for making and using false documents in order to defer the repayment of student loans provided by the United States. Special agents of the Treasury Inspector General for Tax Administration and the U.S. Department of Education's (ED) Office of the Inspector General investigated this matter jointly.

According to the court documents, Porter, while employed full time by the IRS, knowingly and willfully signed and submitted multiple false Federal Family Education Loan Program (FFELP) Unemployment Deferment Request Forms, on which she falsely represented that she was unemployed and was diligently seeking but unable to find full-time employment, in order to defer the repayment of student loans.

Porter's child was enrolled as a student in a college education program during the time that ED was administering the FFELP to assist families with students in college to obtain financial aid. Porter signed and dated a completed Direct Plus Loan (DPL) Application and Master Promissory Note on or about June 16, 2008, for her child's college tuition, which resulted in a disbursement of approximately $49,179 in FFELP funds. The repayment of the loan was deferred while Porter's child was enrolled in college; however, on or about April 28, 2011, following her child's completion of the college program, Porter began submitting deferment applications that falsely represented that she was unemployed or was working less than full time, when, in fact, Porter was gainfully employed full time at the IRS. The outstanding balance on the DPL loans owed by Porter is approximately $86,348.

Sentencing in this matter is scheduled for October 30, 2018. Porter faces a possible maximum statutory sentence of five years' imprisonment, and a fine of not more than $250,000. As part of the plea agreement, Porter will be ordered to pay a $100 assessment fee, as well as restitution.

    Source:  The facts in this case narrative come from the following publicly available documents: D.N.J. Crim. Compl. filed June 13, 2017; D.N.J. Plea Agr. filed May 31, 2018; and D.N.J. Docket as of June 12, 2018.