In Minnesota, two men have been accused of scamming the government out of more than $3 million through tax fraud. Henry Remington Herod from Minneapolis and Matthew McDowell from Louisiana now face serious federal charges for their alleged roles in this crime.
This article breaks down the details of the case and explains how the fraud unfolded.
What Happened?
Herod, 42, and McDowell, 44, have been charged with conspiracy to defraud the U.S. government. Herod faces an additional nine counts of making false claims. According to the U.S.
Attorney’s Office for Minnesota, the two men worked together to file false federal income tax returns for themselves and others. These tax returns included fake employment details, false incomes, and incorrect tax credit information.
Their actions led to large refunds being sent out, even though the people involved weren’t eligible for that money.
Fraudulent Tax Credits Used
The fraudulent activity revolved around specific tax credits:
- Sick and Family Leave Tax Credits: Herod reportedly filed false returns in 2021, claiming credits for individuals who didn’t work due to COVID-19, even though they weren’t eligible.
- Fuel Tax Credits: In 2022, both men prepared fake tax returns claiming credits for fuel taxes paid for off-highway business use.
These false claims were aimed at getting refunds that totaled millions of dollars.
How Big Was the Fraud?
Court documents revealed that Herod and McDowell knowingly prepared and filed 115 false tax returns. The total amount of fraudulent refunds claimed was over $3 million. Federal prosecutors highlighted that the men’s actions were deliberate and part of a larger scheme to cheat the government.
What Happens Next?
The case is now in court, where federal prosecutors will present their evidence. If found guilty, Herod and McDowell could face severe penalties, including prison time and significant fines.
Cases like this highlight the importance of honesty in filing taxes and the serious consequences of trying to defraud the government.
FAQs
1. What were the men charged with?
They were charged with conspiracy to defraud the U.S. government. Herod also faces nine counts of making false claims.
2. How much money was involved in the fraud?
The fraud involved over $3 million in false tax refunds.
3. What tax credits were falsely claimed?
The men claimed sick and family leave tax credits and fuel tax credits, even though they didn’t qualify for them.
4. How many false tax returns did they file?
They filed 115 fraudulent federal income tax returns.
5. What are the possible penalties for tax fraud?
Penalties can include prison time, hefty fines, and repayment of stolen money.
