Stillwell, Kansas tax preparer Richard Drake is headed to federal prison for running a brazen $2.4 million tax refund scam that preyed on his own clients. Drake, who once held himself out as a trusted financial advisor, was sentenced to 48 months behind bars after pleading guilty to aggravated identity theft and theft of government funds.
Court documents reveal Drake’s method was as cold as it was calculated. He prepared accurate tax returns for three clients—then never filed them. Instead, he had those clients make estimated IRS payments throughout the year, giving them a false sense of compliance. When filing season came, Drake submitted fraudulent returns that slashed their reported income and invented fake deductions—then funneled the resulting inflated refunds into accounts he controlled.
The total haul: $2,432,147 stolen from the U.S. Treasury and converted for Drake’s personal use. On top of that, he triggered state-level fraud, owing $98,087 to the Kansas Department of Revenue. His scheme unraveled after IRS-Criminal Investigation agents launched a forensic audit and traced the false filings directly back to his desk.
Drake pleaded guilty on June 6 to one count of aggravated identity theft and one count of theft of government funds. As part of a binding plea agreement, he accepted the 48-month sentence, three years of supervised release, and full restitution to both federal and state agencies. No excuses. No second chances.
Principal Deputy Assistant Attorney General Caroline D. Ciraolo and U.S. Attorney Thomas Beall for the District of Kansas announced the sentencing today from Washington. Both commended the investigators and prosecutors who dismantled Drake’s operation—specifically naming IRS-Criminal Investigation agents and Trial Attorney Ryan Raybould of the Justice Department’s Tax Division, along with Assistant U.S. Attorney Tris Hunt.
This case is a grim reminder: not all white-collar criminals wear suits on Wall Street. Some operate out of small-town offices, betraying the trust of neighbors and friends for cold cash. Drake’s license to prepare taxes is now void—his name, forever tied to fraud.
RELATED: Drake Gets 27 Years for Child Porn
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Key Facts
- State: Kansas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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