Douglas Cavanaugh, Jr., 45, formerly of Binghamton, was arraigned Friday in United States District Court, on an indictment charging him with six counts of filing false claims for tax refunds from the Internal Revenue Service.
It is believed that Cavanaugh has sent more than $20 million in false claims to the IRS.
In February 2009 Cavanaugh took over $250,000 in fraudulently obtained tax refunds and fled to Brisbane, Australia.
The indictment was originally filed under seal in December 2010, and a warrant was issued for Cavanaugh’s arrest.
On March 23rd, Cavanaugh arrived in the US on a flight which originated in Brisbane, Australia, where he now resides.
Judge Thomas McAvoy ordered Cavanaugh detained in the custody of the U.S. Marshal.
The defendent faces a maximum sentence of 5 years in jail, and a maximum fine of $250,000.
The case is being prosecuted by Assistant United States Attorney Thomas P. Walsh.
