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Tampa man sentenced to nearly 4 years in federal prison in $1.4M tax fraud scheme

Prosecutors said fraudulent tax returns used fake gambling winnings, losses and withholding amounts to seek refunds from the IRS

Senate Homeland Security Committee Meets To Consider Reconciliation Recommendations To Budget Committee WASHINGTON, DC - MAY 19: The chairman's gavel is visible before a Senate Homeland Security Committee hearing on Capitol Hill on May 19, 2026 in Washington, DC. The committee is meeting to advance a reconciliation package increasing funding for U.S. Immigration and Customs Enforcement's (ICE) and U.S. Customs and Border Protection (CBP) through a simple-majority vote process. (Photo by Andrew Harnik/Getty Images) (Andrew Harnik/Getty Images)

TAMPA, Fla. — A Tampa man has been sentenced to three years and 10 months in federal prison for his role in a tax fraud scheme that prosecutors said sought more than $1.4 million from the IRS.

Mahmoud Mehdi was sentenced after being convicted of conspiracy to commit wire fraud and making and subscribing a false tax return, according to the U.S. Attorney’s Office for the Middle District of Florida.

A federal judge also ordered Mehdi to forfeit $137,931.33 and pay $732,521.18 in restitution.

Prosecutors said the scheme ran from January 2019 through December 2022 and involved the electronic submission of fraudulent tax forms to the IRS.

The returns allegedly contained fabricated gambling winnings and losses, along with false federal tax withholding amounts based on those fake winnings.

According to court documents, the fraudulent returns sought refunds that the taxpayers were not entitled to receive.

Prosecutors said the intended tax loss totaled about $1.4 million. The actual loss was $732,521.18, which the IRS paid through refunds or credits applied to prior debts.

“Tax fraud isn’t just a numbers game—it’s a crime that harms every honest taxpayer,” IRS Criminal Investigation Acting Special Agent in Charge Charles Miller said.

The case was investigated by IRS Criminal Investigation and prosecuted by the U.S. Attorney’s Office for the Middle District of Florida.

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Brody Wooddell

Brody Wooddell, WFTV.com

Brody Wooddell is a digital journalist and media leader with more than a decade of experience in content strategy, audience growth, and digital storytelling across television and online news platforms.

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