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Salem Woman Jailed, Accused Of $2M Tax Fraud

A Salem woman accused of swindling the Oregon Department of Revenue out of more than $2 million by filing a fraudulent state tax return has been arrested.

Krystle Marie Reyes was arrested Wednesday for investigation of fraud and aggravated theft. She was booked into the Marion County Jail.

According to court documents, Oregon authorities allege Reyes used a tax preparation computer program to file a faked 2011 income tax return with the state in which she reported earnings of $3 million and claimed a refund of $2.1 million. She was issued a Visa debit card for the refund amount.

A probable cause affidavit says state revenue officials found out about the bogus return when Reyes reported the debit card lost or stolen. Authorities allege she spent more than $150,000.

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