A Wisconsin Department of Revenue special agent’s investigation led to the arrest of a suspect in an out-of-state unclaimed property fraud scheme, preventing over $800,000 in fraudulent checks from being paid and ensuring the funds reached their rightful owner, officials announced.
Special Agent Michael Austin, with the Department of Revenue’s Office of Criminal Investigation, began his probe after Tennessee bank employees flagged a suspicious deposit of $894,555 in unclaimed property checks issued by the department. The bank placed a hold on the funds and alerted authorities, prompting Austin to devise a plan to apprehend the suspect.
Austin initially coordinated with the Tennessee bank to lure the suspect to claim the money in person, where local law enforcement was prepared to make an arrest. When the plan unraveled, Austin shifted tactics, directing the suspect to pick up the funds at the Georgia Department of Revenue. Upon arrival, Georgia law enforcement confronted the individual, but uncertainty lingered about his identity due to prior contact only through an untraceable burner phone.
In a decisive moment, Austin dialed the burner phone number. When it rang in the suspect’s pocket, officers confirmed his identity and took him into custody.
The suspect, a former law school student on parole for prior large-scale financial crimes, was prosecuted by the U.S. Attorney’s Office in Georgia and sentenced to 15 months in prison. Austin’s investigation also uncovered additional out-of-state unclaimed property claims, preventing over $400,000 in further fraudulent checks.
“I commend Special Agent Austin, who showed unbelievable determination in solving this crime,” said David Casey, Department of Revenue Secretary Designee. “We are also grateful for the keen eye of those who reported the deposit as suspicious, and we appreciate all the law enforcement support we received to prevent this fraud.”
Austin’s work didn’t end with the arrest. He faced the challenge of locating the rightful owner of the unclaimed funds, a Wisconsin taxpayer who valued privacy and left few traces. The individual frequently changed residences without updating his driver’s license, owned no cellphone, and had no recent vehicle history. Austin contacted five law enforcement agencies, the U.S. Postal Service, and the Social Security Administration to track him down.
“I can’t believe you found me,” the taxpayer said upon learning of his unclaimed inheritance.
“Special Agent Austin really showed his investigative skills in this operation,” said Justin Shemanski, director of the Office of Criminal Investigation. “In this case he was able to use his negotiation skills, quick-thinking, intelligence, communication skills and charisma to locate the suspect and get the funds to the rightful owner.”
The Wisconsin Department of Revenue’s Office of Criminal Investigation focuses on tax-related crimes and encourages the public to report suspected tax fraud at www.revenue.wi.gov under the “Report tax fraud” link.
“Fraud is everywhere, and this case is a reminder that we all have to be vigilant,” said Casey.
