A federal indictment has ensnared two men in a $3 million tax fraud conspiracy, as announced by U.S. Attorney Andrew M. Luger. The indictment, laid out in a ten-count charge, pinpoints Henry Remington Herod, 42, of Minneapolis, and Matthew McDowell, 44, of Port Allen, Louisiana, as the conspirators behind a series of false federal income tax returns, according to U.S. Attorney's Office, District of Minnesota.
Between approximately April 2022 and May 2023, Herod and McDowell are accused of inflating tax refunds by fabricating employment and income data, in addition to claiming unwarranted tax credits. These deliberate misstatements induced hefty tax refunds to be issued erroneously, most notably, refundable sick and family leave tax credits for self-employed individuals during the COVID-19 pandemic for the tax year 2021, and subsequently, refundable tax credits for federal taxes paid on fuel for off-highway business purposes for the tax year 2022. In total, 115 fraudulent tax returns were filed, collectively claiming around $3,032,839 in unearned tax refunds.
The charges against Herod include one count of conspiracy to defraud the United States and nine counts of making false claims. Herod faced the court for the first time on December 12, whereas McDowell's initial appearance was on December 26, 2024. Both men have been released on conditions pending further legal proceedings. This operation unravelled as a result of diligent investigative work by the IRS, Criminal Investigation, and is currently being prosecuted by Assistant U.S. Attorney Matthew C. Murphy.
It should be highlighted, however, that an indictment is not a conviction. The accused, Herod and McDowell, maintain the presumption of innocence until the contrary is proven in court, "beyond a reasonable doubt." The impending trial will seek to move beyond the sphere of allegations and into the realm of substantiated fact. Until then, the legal process will continue to unfold, as the integrity of the tax system hangs, albeit momentarily, in the balance.
