Olney Man Indicted for Filing False Income Tax Returns Claiming Refunds of Over $2 Million
Greenbelt, Maryland – A federal grand jury indicted Mehlek Dawveed, age 49, of Olney, Maryland, on charges arising from a scheme to fraudulently obtain federal tax refunds. The indictment was returned on March 30, 2016 and unsealed today upon Dawveed’s arrest.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“The investigation and indictment of Mr. Dawveed serves as another example of IRS- CI's commitment to ensuring the integrity of our tax system for the American taxpayer,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office.
According to the four count indictment, on March 27, 2011, Dawveed filed an individual income tax return for the tax year 2010 wherein he falsely claimed a tax refund of $977,558. He falsely reported taxable interest of $1,486,902 and federal income taxes withheld of $1,496,400. Dawveed caused the Department of Treasury to wire $977,558 on April 22, 2011 to a bank account he controlled. From April 22, 2011 to June 1, 2014, Dawveed withdrew and caused to be withdrawn a total of $788,991 obtained from the fraudulent tax return by using these funds to pay off his mortgage and other personal expenses, and by causing funds to be transferred to bank accounts controlled by him or his family members.
The indictment alleges that on May 19, 2011, Dawveed had attempted to deposit a check for $115,000 drawn from the fraudulently obtained tax refund into another account controlled by an associate. However, the check was rejected due to insufficient funds because the previous day, the bank returned the remaining $188,567 of the fraudulently obtained tax refund to the IRS at their request.
The indictment further alleges that on February 18, 2012, Dawveed filed another individual income tax return for the year 2011, this time falsely claiming a refund of $1,324,961. On February 27, 2012, Dawveed also filed a 2010 amended tax return wherein he changed his taxable interest income from $1,486,902 to $0. The amended return was accompanied by correspondence falsely stating, “In ‘Good Faith’ we submitted a Payment of $5,000,000 Million Dollars” to the Ogden branch of the IRS on January 31, 2012 “in hopes of settling the remaining ‘Debt’ from our 1040 Tax Filing for Year 2010.”
Dawveed faces a sentence of 20 years in prison for wire fraud; three years in prison for corruptly impeding the Internal Revenue laws; and five years in prison on each of two counts for filing false claims. Dawveed had his initial appearance today in U.S. District Court in Greenbelt and was released on pretrial supervision.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the IRS-Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorneys Sean R. Delaney and Kelly O'Connell Hayes, who are prosecuting the case.