Tax Fraud Costs Woman 10 Years And Lots Of $$$

HOUSTON (AP) — A Houston-area woman must serve 10 years in federal prison and repay more than $2.7 million for tax scam and financial fraud cases since 2005.

Cheryl Reed Johnson of Humble (UHM'-buhl) was sentenced Thursday in Houston.

Johnson in March pleaded guilty to engaging in a conspiracy to commit bank, mail and wire fraud. She also acknowledged making false statements to a bank and wire fraud related to additional conspiracy counts in dealing with the IRS.

Prosecutors say Johnson used stolen Social Security numbers to secure loans from banks, then used the fraudulently obtained cash to buy homes and vehicles.

Investigators say Johnson and others wrongly claimed more than $2.2 million in false first-time home buyer credits on 2008 tax returns.