Redmond man indicted for tax crimes, money laundering and bank fraud
September 7, 2012 · 1:24 PM
A Redmond man who falsely claimed he was owed a tax refund of $827,117 was arrested Friday following his indictment by the grand jury.
Fred F. Frinkd, 68, has been charged with seven criminal counts including bank fraud, money laundering, presenting a fictitious obligation and making false, fictitious and fraudulent claims.
Frink will make his initial appearance on the indictment at 2:30 p.m. Friday in U.S. District Court in Seattle.
According to the indictment, in 2009, Frink hired a tax preparer to prepare his 2008 return. The tax preparer calculated the taxes and determined that Frink was owed a refund of $7,413. However, Frink failed to file that tax return and instead went to an H&R Block outlet and provided bogus forms indicating that more than $1 million had been withheld on his behalf. H&R Block calculated his return using these bogus documents, determining that he was owed $827,117. The IRS did not catch the fraud immediately, and Frink used the money for various transactions that result in the money laundering charges. Concerned that a bank would recognize the fraud in the 2008 tax return he filed, Frink used the return with the smaller refund claim to induce the bank to extend his line of credit.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
If convicted Frink faces up to 30 years in prison and a $1,000,000 fine.
The case is being investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant U.S. Attorney Thomas Woods.