Former IRS Employee Sentenced for Theft of Government Funds

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Fallyn Mathis, 37, of Philadelphia, Pennsylvania, was sentenced to two years’ probation and ordered to pay full restitution in the amount of $12,628 by United States District Judge Cynthia M. Rufe, for collecting unemployment compensation while, at the same time, earning income from her seasonal employment with the Internal Revenue Service (IRS).

The defendant pled guilty in this case to one count of theft of government money in August 2019.  The charge stems from Mathis’ intermittent conduct between 2015 and 2017, during which time the defendant repeatedly certified her eligibility for federal unemployment compensation benefits through the Department of Labor's recertification process, while she was actually in active-work status with, and receiving a salary from, the IRS.  Each false certification prompted the payment of unemployment compensation funds that were electronically deposited into her bank account. Mathis was not entitled to receive more than $12,600 in unemployment benefits that she collected during this time period.

“While serving as an employee of the IRS, a federal government agency working on behalf of taxpayers, the defendant abused the government’s unemployment compensation system for a substantial amount of time,” said First Assistant U.S. Attorney Williams.  “Mathis was essentially double-dipping at taxpayers’ expense; taking funds to which she was not entitled and that should have gone to someone actually struggling with unemployment.”

“The Treasury Inspector General for Tax Administration is committed to identifying and prosecuting Internal Revenue Service employees who fraudulently abuse Federal benefits programs,” said J. Russell George.  “We appreciate the assistance provided by the Pennsylvania Department of Labor and the commitment of the U.S. Attorney for the Eastern District of Pennsylvania in prosecuting this defendant.”

The case was investigated by the Treasury Inspector General for Tax Administration, and is being prosecuted by Assistant United States Attorney J. Jeanette Kang.