Minnesota Man Sentenced to 30 Months for $3 Million Tax Refund Fraud Scheme

Minnesota Man Sentenced to 30 Months for $3 Million Tax Refund Fraud Scheme

July 20, 2026
By Mintesinot Nigussie

A Minnesota man has been sentenced to 30 months in prison and ordered to pay 1.18 million US dollars in restitution for his role in a scheme that involved filing fraudulent federal income tax returns seeking millions of dollars in refunds, US prosecutors said. Henry Remington Herod, 43, was sentenced on July 16, 2026, by Chief US District Court Judge Eric C. Tostrud after pleading guilty to charges related to conspiracy to defraud the Internal Revenue Service (IRS).

According to court documents, Herod worked with Matthew McDowell and others between April 2022 and May 2023 to submit false tax filings using fabricated employment, income and tax credit information. The group obtained personal details, including names, addresses and Social Security numbers, to prepare fraudulent returns. Prosecutors said Herod filed 42 false tax returns for the 2021 tax year, seeking about 1.29 million US dollars in refunds, and another 60 fraudulent returns for 2022 claiming approximately $1.46 million.

The filings included false claims for refundable sick and family leave tax credits and fuel tax credits. Herod also trained McDowell on how to prepare fraudulent returns, including claiming false fuel tax credits, in exchange for payment. Together, the two filed 115 fraudulent federal income tax returns seeking about 3.03 million US dollars in refunds, according to prosecutors.

“Stealing from the United States is stealing from hardworking Americans,” said Daniel N. Rosen, US attorney for Minnesota, adding that authorities would continue prosecuting those who defraud taxpayers. Adam Jobes, special agent in charge of the IRS Criminal Investigation’s Chicago Field Office, said the case demonstrated continued efforts to pursue fraud involving government benefit programmes introduced during the Covid-19 pandemic. McDowell was separately sentenced on April 6, 2026, in connection with the scheme.

The case highlights the ongoing efforts by US authorities to combat tax fraud and protect government revenues. Such schemes not only deprive the public treasury but also undermine public trust in the tax system.

Source: FSX Business News