An attorney formerly based in the Washington D.C. area has been indicted on charges related to tax evasion and making false statements to federal authorities. Richard Graham Foote O’Donoghue, who now resides in the United Kingdom, was arrested upon his entry into the United States.
The indictment was revealed by U.S. Attorney Edward R. Martin Jr. and Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division.
According to the indictment, between 2012 and 2015, O’Donoghue earned substantial income as an independent contractor for several non-U.S. businesses, including a defense contractor in Dubai, UAE, where he later became CEO. During his tenure as CEO, he allegedly received bonuses and benefits such as a car with a driver and a luxury villa rental.
It is alleged that O’Donoghue did not file timely tax returns for 2012 through 2014 but hired a preparer in 2016 to file returns from 2012 through 2015. He reportedly provided false information regarding his employment status and income, claiming to be a general manager instead of CEO while concealing bonuses and company-paid expenses. This led to underreporting his income by approximately $1 million on filed tax returns which resulted in refund requests totaling over $247,000 being paid by the IRS.
In February 2023, it is further alleged that O’Donoghue made false statements concerning his income during interactions with law enforcement agents and Department of Justice prosecutors.
If found guilty, O’Donoghue could face significant penalties including up to five years imprisonment per count of tax evasion, three years per count of filing false tax returns, five years for making false statements, along with supervised release terms, restitution obligations, and monetary fines. The sentence will be determined by a federal district court judge considering various guidelines.
The investigation involves IRS Criminal Investigation and the Special Inspector General for Afghanistan Reconstruction with support from His Majesty’s Revenue & Customs of the UK. Assistance also came from the Joint Chiefs of Global Tax Enforcement (J5), comprising taxing authorities from Australia, Canada, Netherlands, UK, and USA.
The prosecution team includes Assistant U.S. Attorney Joshua Gold alongside Assistant Chief Sarah Ranney and Trial Attorney Ezra Spiro from the Tax Division.
As noted in legal proceedings: "An indictment is merely an allegation," highlighting that defendants are presumed innocent until proven guilty beyond reasonable doubt in court.
