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Politics | local

State Disciplines 4 For Tax Fraud

The state Revenue Department has taken action against four employees who failed to catch a fraudulent tax return that resulted in a $2.1 million refund.

Two employees have been reassigned to jobs in which they will no longer have the authority to approve cash refunds. Two others received disciplinary action, but can stay in their current positions.

The personnel moves followed an internal investigation into a bogus return submitted by 25-year-old Krystle Reyes of Salem.

Reyes received the refund on a debit card and spent about $150,000 before twice reporting the card lost or stolen. At that point the ruse was discovered. The state has recovered about $1.9 million of the money.

Reyes pleaded guilty Tuesday to tax evasion and fraud and was sentenced to 5 ½ years in prison.

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