Christiansburg Man Convicted of Tax, Bankruptcy Fraud Charges
Regan Reedy Filed False Tax Returns Claiming Refunds
Roanoke, VIRGINIA – A Christiansburg man, who filed multiple false tax returns between 2008 and 2009 in an attempt to receive fraudulent tax refunds from the Internal Revenue Service, was convicted this week on multiple tax fraud and bankruptcy fraud charges, Acting United States Attorney Rick A. Mountcastle announced.
Regan Dwayne Reedy, 55, a.k.a. “Wegani Diwaini Klandag Anisahoni,” was found guilty by a federal jury this week on one count of conspiracy to commit tax fraud, two counts of making a false declaration in a bankruptcy proceeding, two counts of concealment of property in a bankruptcy proceeding and three counts of false testimony in a bankruptcy proceeding.
According to evidence presented at trial by Assistant United States Attorney Joseph W. H. Mott, Reedy filed a number of fraudulent tax returns for individuals, claiming refunds. The returns were part of a “1099-OID scheme”, in which the returns claimed excessive federal withholding that resulted in excessive claims for refunds. Most of the fraudulent returns were detected before refunds were issued, however, one refund in the amount of $156,191 was issued.
Twice in 2012 and again in 2014, Reedy and his wife filed Chapter 7 bankruptcy. In those filings, Reedy omitted assets from their bankruptcy schedules and concealed assets from the bankruptcy trustee. At a creditors’ meeting, he falsely testified as to his sources of support and assets.
The investigation of the case was conducted by the Internal Revenue Service – Criminal Investigations, the Federal Bureau of Investigation, and the U. S. Trustees’ Office. Assistant United States Attorney Joseph W. H. Mott prosecuted the case for the United States.