Two Indicted in $228M Refund Scam Involving Bogus Interest Income, Withholding

SAN FRANCISCO—A federal grand jury indicted two men on conspiracy to defraud the government in a $228 million bogus tax refund scheme, the U.S. Attorney for the Northern District of California announced Oct. 17 (United States v. Dashner).

Duffy R. Dashner of Beloit, Wis., and Mark R. Maness of Semmes, Ala., are accused in the indictment of manufacturing a scheme to prepare at least 200 individual income tax returns claiming fraudulent Original Issue Discount (OID) interest income and federal tax withholdings and falsely reporting that financial institutions, creditors, and other entities had withheld large amounts of federal income ...