An indictment was unsealed today in Washington, charging Richard Graham Foote O’Donoghue, a former attorney from the District of Columbia now residing in the United Kingdom, with tax evasion and making false statements to federal authorities. The charges relate to approximately $1 million of income. O’Donoghue was arrested upon his entry into the United States.
The announcement came from U.S. Attorney Edward R. Martin Jr. and Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division.
The indictment outlines that between 2012 and 2015, O’Donoghue earned significant income as an independent contractor for various non-U.S. businesses, including a defense contractor based in Dubai, United Arab Emirates, where he later became CEO. As CEO, he allegedly received bonuses and benefits such as a car and driver and a luxury villa.
O’Donoghue is accused of failing to file timely tax returns for 2012 through 2014. In 2016, he hired a return preparer for tax years 2012 to 2015 but allegedly provided false information regarding his employment status and income. He reportedly claimed to be the general manager instead of CEO and hid bonuses and company-paid expenses. This led to underreported income by about $1 million on his tax returns, which requested IRS refunds exceeding $247,000 — much of which was paid out.
In February 2023, O’Donoghue allegedly made false statements about his income to law enforcement agents and Department of Justice prosecutors.
If convicted, O’Donoghue could face up to five years in prison per tax evasion count, three years per false tax return count, and five years for false statements. Additional penalties may include supervised release, restitution, and monetary fines. A federal district court judge will determine any sentence after considering relevant guidelines.
The investigation involves IRS Criminal Investigation and the Special Inspector General for Afghanistan Reconstruction with support from His Majesty’s Revenue & Customs in the UK. The Joint Chiefs of Global Tax Enforcement (J5), comprising taxing authorities from Australia, Canada, the Netherlands, the UK, and the US also contributed assistance.
Assistant U.S. Attorney Joshua Gold along with Assistant Chief Sarah Ranney and Trial Attorney Ezra Spiro are prosecuting the case.
It is important to note that an indictment is merely an allegation; defendants are presumed innocent until proven guilty beyond a reasonable doubt in court.