Article Summary
Richard Graham Foote O’Donoghue, a former Washington D.C.-area attorney and CEO of a foreign defense contractor based in Dubai, was arrested and charged with tax crimes and making false statements to federal investigators. The indictment accuses O’Donoghue of evading taxes on nearly $1 million in income and attempting to defraud the IRS through a coordinated pattern of deception. If convicted, he faces decades in federal prison.
What This Means for You
- Be aware of the consequences of tax evasion and making false statements to federal authorities.
- Ensure accurate reporting of income, employment, and other relevant information to tax preparers.
- Understand that the IRS takes tax fraud seriously and is actively pursuing charges against individuals who attempt to defraud the system.
- Remain vigilant about foreign entanglements, as they can raise suspicions and lead to further investigation.
Original Post
A well-connected former Washington, D.C.-area attorney and globetrotting executive, Richard Graham Foote O’Donoghue, was arrested upon reentering the United States and charged with serious tax crimes and lying to federal investigators, the Department of Justice announced Friday.
The indictment accuses O’Donoghue of evading taxes on nearly $1 million in income and attempting to defraud the IRS through a coordinated pattern of deception, including filing false returns and fabricating his job title to a tax preparer.
O’Donoghue, who currently resides in the United Kingdom, previously served as CEO of a foreign defense contractor based in Dubai, raising eyebrows about the extent of his foreign entanglements.
According to the press release:
From 2012 through 2015, O’Donoghue made substantial income first as an independent contractor for several non-U.S. businesses, including a defense contractor based out of Dubai, United Arab Emirates, and then as CEO of that contractor.
While he was CEO, O’Donoghue allegedly also received significant bonuses and benefits including a car and driver and a rented luxury villa for his family.
O’Donoghue allegedly did not timely file tax returns for 2012 through 2014. In 2016, however, O’Donoghue hired a return preparer to prepare tax returns for 2012 through tax year 2015. O’Donoghue allegedly provided false information to his return preparer about his employment and income.
False information included telling the return preparer that he was the general manager of the company, not the CEO, and concealing his bonuses and the expenses the company paid on his behalf.
These lies allegedly caused the return preparer to prepare and file false tax returns for those years that underreported his income by approximately $1 million. O’Donoghue requested refunds from the IRS of more than $247,000 — much of which the IRS paid out.
In February 2023, O’Donoghue made false statements about his income and other matters to law enforcement agents and Department of Justice prosecutors.
If convicted, O’Donoghue faces decades in federal prison, including:
- Up to 5 years per count for tax evasion
- 3 years per count for false tax returns
- 5 years for making false statements to the federal government
Key Terms
- Tax evasion
- False statements
- IRS investigation
- Foreign defense contractor
- Tax fraud
- Tax preparer
- DOJ charges
ORIGINAL SOURCE:
Source link
