California Tax Prep Operator Pleads Guilty for Conspiring in $228M Tax Refund Scheme

By on June 24, 2015

Duffy R. Dashner, Mark R. Maness and an attorney in San Francisco conspired to operate a tax preparation business, O.I.D. Process, which falsely reporting Original Issue Discount (OID) interest income and federal tax withholdings on its clients’ tax returns to generate hundreds of millions of dollars in fraudulent tax refunds.

Clients agreed to pay O.I.D. Process a non-refundable registration fee and a 20 percent “refund acquisition fee” for any refund check issued by the Internal Revenue Service (IRS). Clients were also required to change their mailing address to the address of O.I.D. Process’s co-conspiring attorney. Consequently, O.I.D. Process filed about 200 false OID returns and claimed fraudulent refunds of approximately $228 million.

Dashner plead guilty to conspiracy and his sentencing hearing is scheduled for Oct. 2 in San Francisco. Maness had already pleaded guilty to conspiracy and was sentenced in February 2015 to serve 41 months in prison, and ordered to pay $1,176,668 to the IRS.

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