Bogus Interest Scheme Guilty Plea Nets 41-Month Sentence, $1.17 Million Restitution

A South Carolina man was sentenced to 41 months in prison and ordered to pay $1,176,668 on his guilty plea to a $228 million bogus tax refund scheme (United States v. Dashnersentencing).

Mark R. Maness of Spartanburg, S.C., admitted that he and co-defendant Duffy R. Dashner of Beloit, Wis., devised a scheme in which at least 200 Form 1040 income tax returns were filed seeking “enormous, fraudulent tax refunds based on false claims of large income tax withholdings,” the government said in its sentencing memorandum.

The returns claimed fraudulent original issue discount (OID) interest income and federal ...