CHARLESTON, W.Va. — A decade-long financial rip-off has come to a halt with the federal indictment of Misty Brotherton-Tanner, a 40-year-old Charleston tax preparer accused of stealing nearly $600,000 from small businesses she was hired to help. Federal prosecutors say Brotherton-Tanner didn’t just betray her clients — she dismantled their books, invented fake employees, and siphoned wages into accounts she controlled, all while billing them for her so-called services.
The scheme, laid bare in an 18-count indictment, charges Brotherton-Tanner with wire fraud, aggravated identity theft, unlawful monetary transactions, and making false statements. If convicted, she faces up to 270 years in prison — with four years required to be served consecutively — a $4.5 million fine, and three years of supervised release. The crimes allegedly unfolded from 2014 until March 13, 2020, targeting three West Virginia corporations and a now-defunct Kanawha County nonprofit, all of which entrusted her with their financial records.
Using QuickBooks software tied directly to her victims’ bank accounts, Brotherton-Tanner created ‘ghost’ employee profiles — including ones using her own name and those of family members — then funneled money into those accounts before transferring it to personal bank accounts under her control. She was never employed by any of the companies, yet submitted invoices for payment while simultaneously paying herself through fabricated payroll entries. According to the U.S. Attorney’s Office, the digital trail of deception was deliberate, repeated, and designed to conceal the theft in plain sight.
Beyond payroll theft, Brotherton-Tanner allegedly diverted stolen funds into a nonprofit’s bank account she controlled, writing checks from that account to herself and family members — including her mother, Lois Brotherton, who is charged in a separate but related indictment. Authorities say the nonprofit became a laundering point, a shell used to give the appearance of legitimacy to otherwise stolen money while enriching the defendants at the expense of honest businesses struggling to survive.
Compounding the fraud, Brotherton-Tanner falsely told two companies she had filed their federal and state tax returns — a lie she maintained even though she knew taxes had gone unpaid since 2013. To cover her tracks, she made six electronic transfers to the West Virginia Tax Department from a third company’s account, attempting to erase red flags while keeping the larger theft hidden. The DOJ says these were not mistakes — they were calculated moves in a long-running scheme of personal enrichment.
“These victims did everything right — hired good help, managed their books, followed the rules,” said U.S. Attorney Mike Stuart. “Instead of protection, they got a predator.” FBI Pittsburgh Special Agent in Charge Michael Christman added that the betrayal of trust is central to the case: “The FBI does not take lightly any betrayal of trust, especially when it guts small businesses.” The investigation, a joint effort between federal and state agencies, culminated in the unsealing of both indictments this week. Brotherton-Tanner is presumed innocent until proven guilty in court.
Related Federal Cases
- Brandon J. Black Pleads Guilty in $630K Tax Fraud Scheme · West Virginia
- Michael and Jeanette Taylor Guilty in $1.4M Tax Fraud · Kentucky
- Morgantown Couple Pleads Guilty in $8,505 Tax Scheme · West Virginia
- Morgantown Insurance Agent Robert Altmann Sentenced in Fraud Scheme · West Virginia
- Tax Fraud Fugitive Ramos Faces More Time · North Carolina
Key Facts
- State: West Virginia
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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