Richard Thomas Grant Jailed for Tax Evasion

Richard Thomas Grant, 63, of Point Richmond, California, was sentenced to 33 months in federal prison late yesterday after a jury convicted him on three counts of tax evasion. The Oakland verdict marks the end of a years-long campaign by Grant to dodge federal income taxes despite earning more than $2.7 million through his engineering firm between 2005 and 2009.

According to trial evidence, Grant stopped filing individual income tax returns in 2001 and ceased filing partnership returns for Grant Engineering & Manufacturing in 2003—despite continuing to pay a CPA to prepare them. That same year, he joined the radical anti-tax group Freedom Law School, paying thousands annually in membership fees while actively working to undermine IRS collection efforts through a barrage of frivolous lawsuits across multiple jurisdictions—all of which failed.

For the tax years 2005 through 2009, Grant’s partnership income was $509,339, $566,741, $486,062, $598,977, and $604,706, respectively. Rather than report or pay taxes on this income, Grant funneled his distributions through MyICIS, a warehouse bank in Berryville, Arkansas, known for obscuring financial ownership by commingling funds. Between April 2005 and October 2006, he wrote hundreds of checks from the account and loaded multiple prepaid debit cards to cover personal expenses, including his mortgage.

After federal authorities shut down MyICIS, Grant adapted his scheme—converting partnership payouts into cashier’s checks and cash to avoid traditional banking trails. He used cashier’s checks for large payments and purchased dozens of U.S. Postal money orders with cash to cover utilities, property taxes, and expenses tied to his prized classic aircraft collection—further insulating his wealth from IRS scrutiny.

“Mr. Grant spent years trying to devise and implement ways to avoid paying his taxes,” said U.S. Attorney Brian J. Stretch. “In the end, his violations of the law equated to three years in jail and substantial monetary penalties. Similar results await those who cheat on their taxes.” Special Agent in Charge Michael T. Batdorf of IRS-Criminal Investigation added, “This was not a case about someone who simply fell behind in a good faith effort to keep up with their taxes, rather someone who earned millions of dollars and paid no taxes.”

In addition to his 33-month prison term, Grant was sentenced to three years of supervised release and ordered to pay $402,457.39 in restitution to the IRS, $7,500 in fines, and $4,400.90 in prosecution costs. He is to report to begin serving his sentence on January 9, 2016. The case was investigated by IRS-CI and prosecuted by Assistant U.S. Attorney Colin Sampson and Trial Attorney Matthew Kluge of the Justice Department’s Tax Division.