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Two Men Charged in $3M Tax Fraud Scheme
So, here’s the scoop: Two guys, Henry Remington Herod from Minneapolis and Matthew McDowell from Port Allen, Louisiana, are in some serious trouble. They’ve been charged with trying to scam the U.S. government out of over three million dollars in tax refunds. U.S. Attorney Andrew M. Luger announced the charges, which include conspiracy to defraud the United States and making false claims.
Between April 2022 and May 2023, these two allegedly cooked up a scheme to file fake federal income tax returns for themselves and others. They made up false employment, income, and tax credit information to get big refunds that they weren’t entitled to.
For the 2021 tax year, Herod filed bogus tax returns claiming refundable sick and family leave tax credits for self-employed folks who couldn’t work because of COVID-19. Then, for the 2022 tax year, both Herod and McDowell filed more fake returns, this time claiming refundable tax credits for federal taxes paid on fuel supposedly used for off-highway business purposes.
In total, they filed 115 fraudulent tax returns, raking in about $3,032,839 in refunds they shouldn’t have gotten.
Now, Herod and McDowell are each facing one count of conspiracy to defraud the United States. On top of that, Herod is hit with nine counts of making false claims. They both made their initial court appearances in December 2024 and were released with conditions.
NY Manager Pleads Guilty to Kickback Scheme and Medicare Fraud
A New York operations manager, Timothy Doyle of Selden, N.Y., pleaded guilty today in federal court in Boston to conspiring to offer and pay kickbacks to physicians in exchange for ordering medically unnecessary brain scans. Mr. Doyle admitted to one count of conspiracy to violate the anti-kickback statute. U.S. District Court Judge Nathaniel M Gorton scheduled sentencing for April 3, 2025.
Between at least June 2013 and September 2020, Mr. Doyle conspired with others, including two managers from a mobile medical diagnostics company that performed transcranial Doppler (TCD) scans, to establish kickback agreements with various physicians. TCD scans are brain scans measuring blood flow in parts of the brain. Mr. Doyle and his alleged co-conspirators agreed to offer and provide kickbacks, some in cash and others by check, based on the number of TCD ultrasounds ordered by physicians. They created purported rental and administrative service agreements that, on paper, appeared to compensate doctors for the TCD company’s use of space and administrative resources at fair market value rather than the volume or value of referrals. These agreements were fraudulent and concealed the true nature of the per-test payments.
This scheme resulted in fraudulent bills totaling approximately $70.6 million to Medicare, which paid about $27.2 million to the TCD company for these fraudulent claims. The charge of conspiracy to violate the Anti-Kickback Statute carries a sentence of up to five years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and statutes governing criminal case sentences.
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