The DOJ Press Release:
OPERATORS OF O.I.D. PROCESS ARRESTED FOR ASSISTING CLIENTS
WITH FILING FRAUDULENT REFUNDS TOTALING APPROXIMATELY $228 MILLION
WEDNESDAY, OCTOBER 17, 2012
SAN FRANCISCO -- A federal judge unsealed an indictment charging the operators of a business named O.I.D. Process with one count of Conspiracy to file false claims against the United States, announced U.S. Attorney Melinda Haag, Assistant Attorney General of the Justice Department's Tax Division Kathryn Keneally and Internal Revenue Service Criminal Investigation (IRS-CI) Special Agent in Charge Marcus Williams. A federal grand jury returned the indictment on Aug. 28, 2012.
According to the indictment, Duffy R. Dashner aka Kevin Dashner of Beloit, Wisc., and Mark R. Maness of Semmes, Ala., conspired to aid and assist in the preparation and presentation of U.S. Individual Income Tax Returns claiming fraudulent Original Issue Discount interest income and federal tax withholdings, resulting in claims for fraudulent federal income tax refunds.
Dashner and Maness operated the business O.I.D. Process and charged clients a non-refundable registration fee to join the organization and a 20 percent "refund acquisition fee" for any refund check issued by the IRS. Dashner and Maness operated a website and conducted weekly conference calls with clients to offer advice and guidance on how to complete OID returns.
The indictment further alleges that Dashner and Maness required their clients to change their mailing addresses with the IRS to the address of an attorney in San Francisco that they could ensure receipt of their 20 percent refund acquisition fee. O.I.D. Process clients filed approximately 200 returns requesting fraudulent refunds totaling approximately $228 million.
Dashner was also charged in the indictment with two counts of aiding and assisting in the preparation of false and fraudulent U.S. Individual Income Tax Returns that were presented to the IRS.
On Sept. 24, 2012, after being arrested, Dashner appeared before a U.S. Magistrate Judge in Los Angeles and was ordered detained. Following an identity hearing on Sept. 27, 2012, Dashner was ordered to appear in federal court in San Francisco at a date and time to be determined. On Oct. 5, 2012, Maness appeared before a U.S. Magistrate Judge in Greenville, S.C. Maness was also ordered detained and removed to the Northern District of California, and to appear in federal court in San Francisco at a date and time to be determined.
The maximum statutory penalty for conspiracy to submit false claims, in violation of Title 18 is 10 years in prison and a $ 250,000 fine. The maximum statutory penalty for aiding and assisting in the presentation of a false income tax return is three years in prison and a $250,000 fine. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence.
U.S. Justice Department Tax Division Trial Attorney Matthew J. Kluge and Assistant U.S. Attorney Michael G. Pitman are prosecuting this case. The prosecution is the result of an investigation by IRS-CI.
Please note, an indictment contains only allegations against an individual and, as with all defendants, must be presumed innocent unless and until proven guilty.
