David Richison, Wire Fraud, Maryland 2023

Frederick Payroll Processing Business Owner Sentenced to 48 Months in Federal Prison for Defrauding Victims of Over $1.6 Million

Baltimore, Maryland – In a shocking turn of events, David Richison, a 64-year-old resident of Frederick, Maryland, was sentenced to 48 months in federal prison for his involvement in a massive wire fraud scheme. The scheme resulted in the defrauding of victims to the tune of over $1.6 million.

According to court documents, Richison, the owner and operator of a payroll processing business, Period Financial, doing business as Period Payroll, used his clients' tax escrow account to pay for his personal expenses. This involved taking funds directly from his clients' bank accounts to pay for taxes and fees owed to the IRS and state taxing authorities. Richison would then use the escrow account to make electronic payments to the IRS, generating a unique number for each wire sent on behalf of a client.

The scheme, which took place from 2012 to 2014, involved Richison failing to pay over client funds to the IRS as he represented to his clients. He used the funds to pay for personal and business-related expenses, such as legal fees. In one instance, Richison transferred $53,000 from the client escrow account to his personal attorney to pay legal fees.

Richison's scheme was further complicated by his failure to pay over client funds to the IRS, resulting in the clients receiving notices from the IRS that their employment taxes had not been paid. He provided false explanations for the missed payments and falsely promised to make the payments and cover the penalties and interest.

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Timothy M. Dunham of the Criminal Division of the FBI Washington Field Office.

'After years of deceiving his clients for his own personal benefit, Richison is now feeling the consequences of his despicable actions,' said IRS-CI Special Agent in Charge Kelly R. Jackson. 'We will continue to work with the United States Attorney's Office to pursue justice for those who violate our tax laws, especially those who commit fraud at the expense of others.'

Richison was sentenced to 48 months in federal prison for wire fraud and aiding in the filing of a false tax return. The court also ordered restitution and forfeiture in the amount of the victims' full loss, which will be determined after a restitution hearing.

Defendant's Name: David Richison

Criminal Charges: Wire fraud and aiding in the filing of a false tax return

City and State: Baltimore, Maryland

Exact Date: Not specified

Sentence: 48 months in federal prison

Dollar Amounts: Over $1.6 million

Source: https://www.justice.gov/usao-md/pr/owner-frederick-payroll-processing-business-sentenced-48-months-federal-prison-defrauding