An indictment has been unsealed charging an attorney with evading taxes on approximately $1 million of income, filing false tax returns and making false statements to federal authorities.
Richard Graham Foote O’Donoghue previously lived in Washington, D.C., but currently lives in the United Kingdom.
He was arrested on entering the United States on May 9, based on the criminal charges.
According to the indictment, from 2012 through 2015, O’Donoghue made substantial income first as an independent contractor for several non-U.S. businesses, including a defence contractor based out of Dubai, United Arab Emirates, and then as CEO of that contractor. While he was CEO, O’Donoghue also allegedly received significant bonuses and benefits, including a car and driver and a rented luxury villa for his family.
According to the indictment, O’Donoghue did not file tax returns in a timely manner for the tax years 2012 through 2014. In 2016, however, O’Donoghue hired a return preparer to prepare tax returns for 2012 through the 2015 tax year.
O’Donoghue allegedly provided false information about his employment and income to his return preparer. For example, O’Donoghue allegedly told the return preparer that he was the general manager of the company, not the CEO, and concealed 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. Because O’Donoghue had previously made estimated payments, his false returns allegedly requested refunds from the IRS of more than $247,000 — much of which the IRS paid out.
The indictment further alleges that 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 a maximum penalty of five years in prison for each tax evasion count, a maximum penalty of three years in prison for each count of subscribing to a false tax return, and a maximum penalty of five years in prison for the false statements count.
O’Donoghue also faces a period of supervised release, restitution, and monetary penalties.
