Two individuals have been sentenced to prison for their involvement in a wire and tax fraud scheme related to the acquisition of a $1.3 million property in Roanoke County, Virginia. Herman Estes Jr., from Fieldale, Virginia, received an 84-month prison sentence, while Daniel Heggins from Charlotte, North Carolina, was sentenced to 24 months.
According to court documents and statements made during proceedings, Herman Estes filed a false amended income tax return for 2021, claiming a refund of $18.3 million. In March 2023, he offered $1.3 million in cash for a property on Old Mill Plantation Road in Roanoke County. To support this offer, Estes presented a proof of funds letter created using an online form and provided contact information for Heggins, whom he identified as his trust manager with authority over the transaction. When contacted by the real estate agent, Heggins confirmed approval of Estes's use of trust funds for the purchase.
Estes attempted to pay for the property with a fraudulent cashier’s check amounting to $1,307,199.43 drawn off a Federal Reserve Bank account. The settlement company's trust account was debited before the check was flagged as fraudulent.
In March 2023, Estes also filed another false tax return seeking a $2.9 million refund.
Chief U.S. District Judge Elizabeth K. Dillon ordered both men to serve three years of supervised release following their prison terms.
The case announcement was made by Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and Acting U.S. Attorney Zachary T. Lee for the Western District of Virginia.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and IRS Criminal Investigation conducted the investigation.
Trial Attorney Andrew Ascencio from the Tax Division and Assistant U.S. Attorney Lee Brett prosecuted the case with assistance from former Assistant U.S. Attorney Kristin Johnson.