Maryland Man Admits to Widespread Tax and Unemployment Fraud Conspiracy

A Maryland man has pleaded guilty to federal charges related to a broad conspiracy that defrauded the government of millions of dollars through false tax claims and unemployment insurance fraud, according to the U.S. Attorney’s Office for the District of Maryland. Daiwor “Mark Brown” Woah-Tee, 53, of Belcamp, admitted to engaging in schemes that resulted in the fraudulent acquisition of tax refunds and pandemic-era unemployment benefits. This prosecution is part of a larger federal effort to combat fraud impacting government programs.

The conspiracy, which spanned from January 2018 to December 2024, involved the filing of fraudulent tax returns with the Internal Revenue Service (IRS). Woah-Tee and his associates are accused of preparing and submitting false Form 1040s that contained fabricated information regarding dependents, income, educational expenses, and eligibility for credits like the Earned Income Tax Credit. By doing so, they sought and obtained tax refunds to which they were not entitled. The scheme to defraud the IRS also involved identity theft, as Woah-Tee and his co-conspirators obtained personal and financial information from individuals seeking tax preparation services. These individuals’ identities were then used to file fraudulent returns. The conspirators directed the IRS to deposit fraudulent refunds into bank accounts they controlled or had the Treasury Department send checks to addresses under their command. The fraudulent tax refund scheme alone resulted in claims for at least $3.5 million in undeserved refunds.

During the COVID-19 pandemic, the scope of the fraud expanded to include unemployment insurance (UI) benefits. Woah-Tee and his co-conspirators applied for UI benefits from the Maryland Department of Labor on behalf of individuals, often without their knowledge or consent. They falsely represented that these individuals were eligible for benefits. The scheme led to the Maryland Department of Labor depositing more than $550,000 in UI benefits into financial accounts controlled by the conspirators, which were then withdrawn and used for personal gain via debit cards.

As part of his guilty plea, Woah-Tee has agreed to pay restitution to the Internal Revenue Service in the amount of $3.5 million and to the Maryland Department of Labor for $550,000. He has also consented to the forfeiture of approximately $4 million obtained through these criminal activities. Woah-Tee faces significant prison time, with potential sentences of up to 10 years for conspiracy to submit false claims to the IRS, 20 years for wire fraud conspiracy, and two years for aggravated identity theft.

This case highlights the federal government’s ongoing efforts to investigate and prosecute those who exploit government programs and commit financial crimes. The Department of Justice has established a National Fraud Enforcement Division specifically focused on combating fraud against the American public. This division’s work is in support of broader governmental initiatives aimed at eliminating fraud, waste, and abuse within federal benefit programs. For individuals who have information regarding potential fraud related to COVID-19, the Department of Justice operates a National Center for Disaster Fraud Hotline and a web complaint form for reporting allegations.

The investigation was a collaborative effort involving the Internal Revenue Service – Criminal Investigation (IRS-CI), the U.S. Department of Labor – Office of Inspector General (DOL-OIG), and the Department of Homeland Security – Office of Inspector General (DHS-OIG). The prosecution is being handled by Assistant U.S. Attorneys Jared W. Murphy and Matthew P. Phelps.

Article by Mel Anara, based upon information from the U.S. Attorney’s Office, District of Maryland

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