Durand Micheau Gets 9.5 Years for IRS Tax Fraud Scheme

Durand Micheau, 48, of Ferndale, Michigan, was sentenced to 114 months in federal prison for masterminding a brazen scheme to defraud the Internal Revenue Service, U.S. Attorney Matthew Schneider announced today. The hard-fought conviction culminates a years-long investigation into a web of fake trusts, stolen identities, and fraudulent tax returns that siphoned nearly a million dollars from the U.S. Treasury.

Micheau was convicted by a jury in May 2017 on multiple counts including conspiracy, mail fraud, aggravated identity theft, and illegal monetary transactions. U.S. District Judge Judith E. Levy also imposed a 3-year term of supervised release and ordered Micheau to pay $360,500 in restitution. The sentence follows earlier rulings against his co-conspirators — his wife, Sharon Gandy-Micheau, and her brothers, Anthony and Christopher Gandy — all of whom were found guilty in separate jury trials.

The scheme revolved around the submission of more than 20 fraudulent IRS Form 1041s — U.S. Income Tax Returns for Estates and Trusts — which falsely claimed over $1.4 million in non-existent income tax withholdings. As a result, the IRS issued 14 refund checks totaling $940,000, payable to phantom trusts set up by the defendants. Using stolen identities from victims who lost wallets or purses, the group secured Employer Identification Numbers (EINs), opened post office boxes, and established bank accounts in the trusts’ names — none of which were legitimate.

Once the refund checks arrived, they were either deposited into the sham accounts followed by rapid cash withdrawals or cashed directly at local check-cashing outlets. The operation relied heavily on close associates and family members to lend their names, IDs, and cooperation in maintaining the illusion of legitimacy. Real people’s personal data was weaponized to exploit a system built on trust.

“These defendants attempted to steal taxpayer money, and they did so by using the identities of innocent victims,” Schneider said. “This case is yet another example of how the talented IRS agents in our district are detecting fraud and bringing offenders to justice.” IRS-CI Special Agent-in-Charge Manny Muriel emphasized the breach of public trust: “Our tax system is based on voluntary compliance… Anthony Gandy and his codefendants abused that honor system by creating fictitious tax withholdings in excess of $1.4 million.”

The investigation was conducted by IRS Criminal Investigation agents in Detroit. Assistant U.S. Attorneys Stephen Hiyama and Ross MacKenzie led the prosecution, with support from paralegal Carol Oliver. With Micheau now behind bars, federal authorities are sending a clear message: fraud against the American taxpayer will be met with maximum consequences.