Chapter 11: The Subpoenas
Two weeks later, the legal reality struck with the force of a hammer. A black sedan pulled up to Robert and Janet’s house. Two agents from the IRS Criminal Investigation Division, alongside local law enforcement, knocked on the door.
They weren't there to chat. They served Janet with formal subpoenas. The transfer of the $73,000 from a tax-sheltered 529 plan without educational justification was a massive tax violation. The fact that she had used her outdated custodial status to override my primary ownership escalated it to a federal offense.
My lawyer, Marcus, called me that afternoon. “The prosecutor reached out, Claire. They are looking at a minimum of three to five years in federal prison for your mother for wire fraud and tax evasion. Your sister is being investigated as an accessory after the fact.” “Is there a plea deal?” I asked. “The prosecutor is willing to offer probation,” Marcus said, “but only on one absolute condition. Full, immediate restitution of the stolen funds to Anna’s account, plus the payment of all IRS penalties and your legal fees.” “They don't have the cash,” I said. “Then they’ll have to liquidate,” Marcus replied coldly. “Or pack a toothbrush.”
