Arrested at the Border: Ex-D.C. Power Player with Foreign Defense Ties Faces Federal Tax Charges
Richard Graham Foote O’Donoghue, a former Washington, D.C.-based attorney turned international defense executive, has been arrested upon reentering the United States and indicted on a litany of tax fraud, evasion, and obstruction charges, according to a statement from the Department of Justice released Friday.
Once the CEO of a Dubai-based defense contractor, O’Donoghue is now staring down decades in federal prison for allegedly concealing nearly $1 million in income and defrauding the IRS with false tax returns and deceptive statements.
A Web of Deceit Spanning Years and Continents
Between 2012 and 2015, O’Donoghue reportedly raked in significant compensation, first as an independent consultant and then as CEO of the Dubai defense firm, all while failing to properly file U.S. tax returns. According to prosecutors, his executive perks included bonuses, a luxury villa rental, and even a personal driver—benefits he allegedly failed to disclose to the IRS.
In a calculated maneuver, O’Donoghue later hired a tax preparer in 2016 to retroactively file returns for the missing years—but the DOJ alleges he provided false job titles, omitted income, and intentionally underreported bonuses and expenses paid on his behalf.
The result? More than $247,000 in refunds wrongfully requested—and paid out by the IRS in part, the indictment says.
Alleged Lies Continue into 2023
The deception didn’t stop with paperwork. In February 2023, prosecutors say O’Donoghue lied to federal investigators and DOJ attorneys during interviews, further compounding his legal jeopardy with false statements and misrepresentation of his financials.
The Charges and Possible Penalties
If convicted, O’Donoghue could face:
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Up to 5 years per count for tax evasion
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Up to 3 years per count for filing false returns
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5 years for making false statements to the U.S. government
With multiple counts pending, his potential sentence could span decades behind bars.
Foreign Influence Concerns
O’Donoghue’s leadership of a foreign defense firm, especially one based in the United Arab Emirates, is likely to intensify scrutiny over potential security risks, financial secrecy, and international leverage. His sudden arrest at the border suggests authorities were preparing for a high-risk apprehension.
The Department of Justice has not yet announced a trial date, but O’Donoghue is expected to face a federal judge within days as the case progresses.
