How does an IRS agent, Sheila Koch, San Jose office, commit fraud? I had an exempt organization, exempt under 501(c)(3) of the Internal Revenue Code. I saved the arboretum from closing at UCSC, and installed computers, software and provided seminars in public schools throughout California. I operated the not for profit organization, Assured Nonprofit Services, Incorporated for nearly three years. Although I was a volunteer, I was happy to assist towards improving the lives of others.

The Criminal Investigation Division of the IRS started an investigation in January of 1997 on the nonprofit. After an exhaustive investigation by CID, which lasted nearly five years, they were unable to find any in-propriety. Rather than close the case, Jeff Jack of CID, asked Melissa Sinunu Watkins, formerly of Jostens Learning Company, currently Compass Learning, and now employed by Curriculum Advantage, if she would participate or assist them in the investigation. CID believed that would be beneficial since her mother, Karyn Sinunu, was the Assistant District Attorney of Santa Clara County.

In November of 1998, Jeff Jack of CID provided several pieces of information to the Mountain View Police Department, Ted Rodgers. They informed Mr. Rodgers that I had stolen the money, and was not going to provide any computers or seminars to the schools. Melissa Sinunu became my business partner in the venture, and she allowed me to order approximately $300,000 in products from Jostens Learning Company. Melissa said that I could pay in installment over a five year period. I devised a business plan for future installations in school and ordered the necessary products.

Ted Rodgers of Mountain View police department was then spearheading the investigation. Based on false information provided by CID, Mr. Rodgers solicited complaints from funding corporations. In December of 2000, Sheila Koch, Internal Revenue Agent, from exempt organizations division initiated an audit on my nonprofit corporation. Gladly, I mailed all the books, records and receipts to her office in San Jose, which included a CPA audit report, statement under penalties of perjury by a board member regarding the finances of nonprofit and letters from public schools in California.

The audit took place between December of 2000 and April of 2002. It was an extensive audit in which I provided a receipt for every transaction on the books. However, the IRS was in a difficult position since they had already

• 1
• 2
• next page >>

---

Add your voice

Know something about Commentary: Fraud by IRS?
We want to hear your view. Write now!