November 29, 2016

A Stillwell, Kansas tax return preparer was sentenced to 48 months in prison for stealing his clients’ identities and federal income tax refunds falsely claimed in their names. According to documents filed with the court, Richard Drake used three of his clients’ personal identities to file false federal income tax returns that claimed inflated refunds. As part of his scheme, Drake prepared accurate federal income tax returns for these clients, which he provided to them but did not file with the Internal Revenue Service (IRS). He then had these clients make estimated tax payments to the IRS during the year. Once it was time to file on behalf of his clients, Drake filed false tax returns with the IRS that underreported his clients’ income and claimed false expenses in order to generate large income tax refunds which he directed to accounts under his control. In total, Drake stole and converted to his own use $2,432,147. DOJ

Tagged in: Tax Fraud,