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KC man sentenced in tax-fraud scheme

Kansas City scrap metal businessman admits tax evasion
Posted at 4:48 PM, Jun 21, 2020
and last updated 2020-06-21 17:48:13-04

KANSAS CITY, Mo. — A Kansas City, Missouri, man was sentenced on Friday to eight-and-a-half years in federal prison without parole in connection to a $2.5 million tax fraud scheme that included stealing his childrens’ identities.

Michael A. Kheop, 53, was found guilty on Dec. 2, 2019, of three counts of making false claims, two counts of mail fraud and one count of aggravated identity theft.

In 2013, Kheop created a “fraudulent business entity,” according to a news release.

“He then created fraudulent W-2 forms that contained false income and withholding in order to fraudulently claim refunds in his own name and using his three minor children’s names,” the release stated.

Kheop filed a dozen fraudulent refund claims on behalf of his children -- all minors -- from 2014-17 and four fraudulent refund claims under his own name from 2015-17.

He attempted to defraud the government of $2.6 million, according to the release, and the U.S. Treasury paid him $24,322.

In 2017 and 2018 the IRS sent Kheop checks in the amount of $717,910 and $1.6 million, respectively, but bank employees refused to deposit the checks “due to suspect fraud and contact the IRS,” the release stated.

He also has been ordered to pay $24,322 in restitution.