Crystal Charmae Richards Indicted in $500K Tax Fraud Scheme

Crystal Charmae Richards, 44, of Chester, Virginia, is facing federal charges after being indicted on multiple counts of filing false tax returns and stealing refunds from unsuspecting clients. The indictment, returned yesterday by a federal grand jury in Richmond, exposes a years-long scheme that exploited the U.S. tax system for personal gain.

From 2011 through 2015, Richards operated as a tax return preparer alongside David Wayne Schneider, who has already pleaded guilty and been sentenced. Together, they falsified returns by claiming fake dependents, phantom business losses, and fraudulent education credits—all designed to inflate refunds. But the scam went deeper: Richards allegedly used clients’ identities without consent to file bogus returns, then kept the entire refund for herself.

Schneider copped to his role in the fraud, pleading guilty on January 27 and receiving a 24-month prison sentence on April 25. He’s also on the hook for $515,104.74 in restitution to the IRS—the exact amount the government says was lost due to the duo’s criminal filing spree. His cooperation may shine a harsher light on Richards as prosecutors move toward trial.

The case was announced yesterday by Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Thomas Holloman, Acting Special Agent in Charge of IRS-Criminal Investigation’s Washington, D.C. Field Office. Assistant U.S. Attorney Michael C. Moore is leading the prosecution, signaling federal determination to crack down on tax fraud that drains public coffers.

IRS-CI led the investigation, with critical support from the Department of Treasury’s Office of Inspector General and the Social Security Administration’s Office of Inspector General. The collaboration underscores how layered financial crimes demand multi-agency pursuit—especially when identity theft and systemic fraud intersect.

Richards now faces a judicial process where every allegation must be proven beyond a reasonable doubt. Court records, including Case No. 3:16-cr-155 and 3:15-cr-201, are accessible via the Eastern District of Virginia’s District Court site and PACER. As always, the defendant is presumed innocent until proven guilty.