Gambling with Fraud is a Losing Bet


You’d think that someone who used to own a bail bonding company would be well aware of the costs of running afoul of the law. The Richmond Times-Dispatch reports that a Virginia man, who also was a former tax preparer who once unsuccessfully campaigned to become a court clerk, is paying the price for stealing nearly more than $800,000 from the government through various fraud schemes.

According to the report, the man (and other unnamed parties) fraudulently claimed $515,104 dollars from the government by filing 129 fraudulent tax returns over a five-year span of time. He also incorrectly claimed that he had no taxable income in 2010 and 2011. As it turns out, he had won more than $100,000 gambling during that time. ($100,000? What’s this guy’s game?) But despite his triple-digit winnings, he also admitted to illegally receiving welfare, including disability and Medicare benefits. (It’s so hard to quit when you’re on a roll.)

Needless to say, claiming no taxable income sends out a giant red flag, which prompted authorities to take a closer look. They discovered that the man had been using stolen taxpayer dollars to live the high life, with at least two homes and multiple luxury cars. (”Oh, my Mercedes? I won it at the track.”) Before long, all the cards fell. Ultimately, he pleaded guilty to charges related to wire fraud, tax fraud and theft of government property, for which he was sentenced to two years in prison and ordered to pay $836,167 in restitution. (Probably not much future as an elected official now.)

Source: Today’s ”Fraud of the Day” is based on, ”Former tax preparer sentenced to 2 years on federal fraud charges,” a report written by Frank Green and published by Richmond Times-Dispatch on April 25, 2016.

David Wayne Schneider pleaded guilty in January to the charges stemming from a scheme in which he and unspecified others filed at least 129 fraudulent tax returns claiming $515,104 in tax benefits over a five-year period. Schneider admitted that in tax years 2010 and 2011 he claimed he had no taxable income when he had more than $100,000 in gambling winnings in each year. He also admitted wrongfully receiving disability and Medicare benefits.

In all, he defrauded the government out of $836,167 to which he was not entitled and must pay back in restitution.

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Larry Benson
Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.