What started as a suspiciously large tax refund turned into a full-blown federal case for a woman in Honolulu, Hawaii.
Now, she’s facing years behind bars for a complex fraud operation that fooled both the IRS and her mortgage lender.
Fake Tax Forms and a $464K Refund That Shouldn’t Have Happened
Hannah Heart, a resident of Honolulu, has officially pleaded guilty to defrauding both the IRS and her mortgage lender in a layered scheme involving fake documents, misleading forms, and serious financial deception.
According to court documents, it all began with a false tax return in 2014.
Heart, working with others, submitted a return claiming she had earned more than $2.4 million from a mortgage lender.
The catch? That income—and the supposed $1.2 million in taxes withheld—never actually existed.
Using a fabricated tax form made to look like it came from a real financial institution, Heart filed a return that led to a massive and undeserved refund of $464,904. And incredibly, the IRS paid it.
Dodging the IRS with a Sleight of Hand and Fake Letters
But it didn’t stop there. When the IRS started to catch on and attempted to get the money back, Heart quickly moved the funds.
She deposited the refund into a trust account she controlled, then transferred most of the money into another account under her name.
And to make matters worse, she tried to outmaneuver the IRS by bombarding them with false and frivolous letters, hoping to throw them off the scent.
Running the Same Scam Again—This Time for a Co-Conspirator
Heart didn’t just stop at her own return. She helped another person carry out the exact same scam.
Together, they deposited another $1 million fraudulent refund check into a separate account.
The money was again tied to a fake tax return that mimicked the original scheme.
In total, the IRS lost more than $1.6 million as a result of Heart’s actions.
Mortgage Fraud on Top of Tax Fraud
As if defrauding the IRS wasn’t enough, Heart was also involved in a mortgage scam.
She had taken out a mortgage on her home back in 2006 but hadn’t made payments since 2010.
After over a decade of nonpayment, the lender finally moved to foreclose in 2022.
Instead of settling the debt, a co-conspirator sent the lender a completely fake check that was meant to cover the entire outstanding amount—over $2 million.
At first, the lender accepted the payment, but it was soon flagged as fraudulent.
Despite that, Heart went further, sending follow-up mail demanding the lender accept the bogus check as if it were valid.
Serious Charges and a Long Sentence Looming
Now, Heart is facing the legal consequences of her actions.
She’s pleaded guilty to mail fraud and conspiracy to defraud the IRS. She could serve up to 20 years in prison for the mail fraud and an additional 5 years for the IRS conspiracy.
Beyond prison time, Heart may also have to pay restitution, face fines, and undergo a period of supervised release once her sentence is complete.
The Federal Government Isn’t Taking This Lightly
The case is being handled by the U.S. Department of Justice’s Tax Division, along with the U.S. Attorney’s Office for the District of Hawaii.
Investigators from the IRS Criminal Investigation unit, the Treasury Inspector General for Tax Administration, and the FBI all played roles in uncovering the scheme.
Prosecutors from both the federal tax division and the local U.S. Attorney’s Office are continuing to push the case forward as Heart awaits sentencing.