Christiansburg couple Regan Dwayne Reedy, 56, and Susan Annette Reedy, 50, were sentenced last week on federal charges tied to a sprawling scheme to defraud the IRS and the bankruptcy court of more than $1.8 million. The pair, now headed to federal prison, were found guilty of filing phony tax returns and hiding vast assets while seeking debt relief under Chapter 7.
Regan Reedy was hit with a 108-month prison term after conviction on charges of conspiracy to commit tax fraud, making false declarations in bankruptcy, concealing property, and giving false testimony under oath. Evidence presented by Assistant U.S. Attorney Joseph W. H. Mott showed Reedy filed numerous fraudulent tax returns claiming inflated federal withholdings, resulting in refund demands exceeding $1 million. One payment—$156,191—was actually issued before authorities caught on.
Susan Reedy, sentenced to 78 months, was convicted on three counts: making false declarations, concealing property, and giving false testimony during bankruptcy proceedings. She played a central role in the couple’s dual fraud operation, filing multiple bankruptcies in 2012 and 2014 while omitting key assets from court disclosures.
The Reedys didn’t just lie on paper—they buried assets in nominee names to vanish homes, vehicles, and bank accounts from the reach of creditors and trustees. At a December 2014 creditors meeting, both defendants lied under oath about their income sources and financial holdings. Their deception stretched across years and multiple filings, painting a picture of deliberate, calculated fraud.
Federal prosecutors proved the couple concealed more than $1.8 million in assets during their bankruptcy cases. That staggering sum—hidden through shell filings and false identities—sealed their fate at sentencing. U.S. Attorney Rick A. Mountcastle called the conduct a direct assault on the integrity of federal financial systems.
The case was investigated by the IRS Criminal Investigation Division, the FBI, and the Office of the U.S. Trustee. With prison terms now imposed, federal authorities say the convictions send a clear message: fraud against the tax and bankruptcy systems will be met with maximum consequences.
Related Federal Cases
- Michael and Jeanette Taylor Guilty in $1.4M Tax Fraud · Kentucky
- Brandon J. Black Pleads Guilty in $630K Tax Fraud Scheme · West Virginia
- Dan Horsky Pays $100M in Tax Fraud Case · Washington
- Tax Fraud Fugitive Ramos Faces More Time · North Carolina
- Cumberland Electrician Richard Alex Sentenced for IRS Tax Fraud · Virginia
Key Facts
- State: Virginia
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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