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Two Men Sentenced for Real Estate and Tax Fraud Schemes in Virginia
Herman Estes Jr. of Fieldale, Virginia and Daniel Heggins of Charlotte, North Carolina have been sentenced to prison for their roles in a wire and tax fraud scheme to obtain a $1.3 million home in Roanoke County, Virginia.
According to court documents and statements made in court, Herman Estes Jr. filed a false amended income tax return for 2021 claiming he was entitled to a refund of $18.3 million. In March 2023, Estes made a $1.3 million cash offer for a property on Old Mill Plantation Road in Roanoke County.
To legitimize this offer, Estes provided the parties to the transaction with a proof of funds letter that he created using an online form. Estes also provided the real estate agent with Heggins’ contact information and claimed Heggins was his trust manager with authority to approve the cash offer.
When the real estate agent contacted Heggins, Heggins purported to approve Estes’s use of his trust funds to purchase the house. As payment for the property, Estes tendered a fraudulent cashier’s check in the amount of $1,307,199.43 signed by him and purportedly drawn off a Federal Reserve Bank. Funds in that amount were debited to the settlement company’s trust account before the check was flagged as fraudulent.
In March 2023, Estes filed another false tax return claiming he was entitled to a $2.9 million refund.
Chief U.S. District Judge Elizabeth K. Dillon of the Western District of Virginia ordered Estes to serve 84 months in prison and Heggins to serve 24 months in prison. In addition to the terms of imprisonment, Judge Dillon also ordered Estes to serve three years of supervised release and Heggins to serve three years of supervised release.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Tax Division and Acting U.S. Attorney Zachary T. Lee for the Western District of Virginia made the announcement. The Bureau of Alcohol, Tobacco, Firearms and Explosives and IRS Criminal Investigation investigated the case.
Trial Attorney Andrew Ascencio of the Tax Division and Assistant U.S. Attorney Lee Brett for the Western District of Virginia prosecuted the case. Former Assistant U.S. Attorney Kristin Johnson for the Western District of Virginia assisted in the investigation and prosecution.
Herman Estes Jr. was sentenced for two counts of filing false tax returns and one count of wire fraud. Daniel Heggins was sentenced for one count of wire fraud.
The crime occurred in Roanoke County, Virginia in March 2023.
Key Facts
- State: Virginia
- Category: White Collar Crime|Fraud & Financial Crimes|Tax Evasion
- Source: DOJ Press Release â†â€â€
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