Christiansburg Couple Sentenced on Tax Fraud, Bankruptcy-Related Charges
Regan and Susan Reedy Will Both Serve Time in Federal Prison
Abingdon, VIRGINIA – United States Attorney Rick A. Mountcastle announced the sentencing of two Christiansburg residents who were previously convicted of tax fraud and multiple bankruptcy fraud charges.
Regan Dwayne Reedy, 56, was sentenced last week to 108 months in prison. He was previously convicted of conspiracy to commit tax fraud, making false declarations in a bankruptcy proceeding, concealment of property in a bankruptcy proceeding and false testimony in a bankruptcy proceeding.
Susan Annette Reedy, 50, was sentenced last week to 78 months in prison. She was previously convicted of making false declarations in a bankruptcy proceeding, concealment of property in a bankruptcy proceeding and false testimony in a bankruptcy proceeding.
According to evidence presented to the jury during the trial of Reagan and Susan Reedy by Assistant United States Attorney Joseph W. H. Mott, Reagan Reedy filed a number of fraudulent tax returns for individuals claiming refunds. The returns claimed excessive federal withholdings that resulted in excessive claims for tax refunds totaling over $1 million. A majority of the fraudulent returns were detected before refunds were issued, however, one refund in the amount of $156,191 was issued.
In addition to the tax return fraud, Regan Reedy and Susan Reedy filed three Chapter 7 bankruptcies seeking to discharge debts to private and governmental creditors. In filings in 2012 and again in 2014, Regan and Susan Reedy omitted assets from their bankruptcy schedules and concealed assets from the bankruptcy trustee. Those assets included bank accounts, real estate, and vehicles they had placed in nominee names. At a creditors meeting in December 2014, both falsely testified regarding their means of support and the extent of their assets. During their sentencing hearings last week, Regan and Susan Reedy were each held responsible for concealing over $1.8 million in assets during the course of the bankruptcies.
The investigation of the case was conducted by the Internal Revenue Service-Criminal Investigations, the Federal Bureau of Investigation, and the Office of the United States Trustee.