A former employee at the Virginia Department of Social Services in Nottoway County, Coles prepared at least 222 federal income tax returns claiming bogus itemized deductions and business losses. Her action caused the U.S. Treasury to lose at least $949,000. She also prepared fraudulent Virginia returns.
Court documents say Coles used family members and friends to recruit clients and also prepared returns for herself, family members, friends and colleagues. She tried to hide the activities and proceeds from her scheme by using bank accounts in the name of a family member.
Coles stole identities of taxpayers for whom she had prepared returns and used their information to claim fake childcare expenses on other returns. She also asked some clients to tell Internal Revenue Service investigators that someone else prepared their returns.