GREENWOOD, Ind. -  

A Greenwood woman was accused of five counts of federal tax evasion on charges that she filed $84,000 in fraudulent tax returns, avoiding a payment of more than $84,000 in income taxes, United States Attorney Joe Hogsett said.

Stephanie Donelli, 35, filed five fraudulent tax returns between 2008 and 2012, all of which understated her adjusted gross income for the prior calendar year. The amount of understated tax liability increased every year, beginning with $2,664 on the 2007 tax returns, escalating to nearly $29,000 on the 2011 returns, Hogsett said.  

The investigation began in June 2011, when the Lawrence Police Department received a report that Donelli was defrauding an elderly individual. According to the report, an 84-year-old victim said she had been providing regular payments to Donelli in return for a promised return based on pending litigation.  The litigation did not exist, police said.

“We are dedicated to ending the culture of corruption in this state, and I am proud to say that this is a true team effort,” Hogsett said. “Working with local partners like the City of Lawrence Police Department, we are reducing fraud and waste and protecting Hoosier taxpayers.”

Donelli could face up to five years in federal prison and fines of up to $100,000 if she is found guilty.