A well-connected former Washington, D.C.-area attorney and globetrotting executive, Richard Graham Foote O’Donoghue, was arrested upon reentering the United States and charged with serious tax crimes and lying to federal investigators, the Department of Justice announced Friday.
The indictment accuses O’Donoghue of evading taxes on nearly $1 million in income and attempting to defraud the IRS through a coordinated pattern of deception, including filing false returns and fabricating his job title to a tax preparer.
O’Donoghue, who currently resides in the United Kingdom, previously served as CEO of a foreign defense contractor based in Dubai, raising eyebrows about the extent of his foreign entanglements.
According to the press release:
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 defense contractor based out of Dubai, United Arab Emirates, and then as CEO of that contractor.
While he was CEO, O’Donoghue allegedly also received significant bonuses and benefits including a car and driver and a rented luxury villa for his family.
The indictment alleges that O’Donoghue did not timely file tax returns for tax years 2012 through 2014. In 2016, however, O’Donoghue hired a return preparer to prepare tax returns for 2012 through tax year 2015. O’Donoghue allegedly provided false information to his return preparer about his employment and income.
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 alleged 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 decades in federal prison, including:
- Up to 5 years per count for tax evasion
- 3 years per count for false tax returns
- 5 years for making false statements to the federal government
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