Augusta County businessman guilty of bilking IRS out of nearly $3.2 million

HARRISONBURG – Richard Moore, a former executive vice president with Nexus Services Inc., pleaded guilty Tuesday to defrauding the IRS out of nearly $3.2 million, nixing a scheduled two-week jury trial.

Appearing in United States District Court in Harrisonburg, Moore, 47, pleaded guilty to two counts of tax fraud for failing to account for and pay over trust fund taxes. Authorities said he withheld the taxes from the pay of Nexus employees but didn’t hand it over to the federal government.

Moore now faces up to a maximum of 10 years in prison and up to a $500,000 fine.

His troubles with federal authorities began in 2021 when he was indicted on 10 counts of tax fraud. The case grew as eight additional charges were brought forth through two superseding indictments, including six new charges lodged against Moore in September.

When initially charged three years ago, Moore was accused of owing the IRS $1.5 million before the figure more than doubled to $3,197,800

Moore, who once owned Nexus along with his spouse, Michael Donovan, supposedly left the company in 2022 and gave up his stake to his husband. But federal authorities said after he was initially indicted in 2021, Moore continued to bilk the IRS.

“Even though Moore purported to transfer his ownership interest in Nexus to one of his co-owners, he continued to exercise control over Nexus’s business and financial affairs, including determining which of Nexus’s bills to pay and when to pay them,” the second superseding indictment stated.

Nexus provided bond securitization for immigrants held or released from U.S. Immigration and Customs Enforcement (ICE). The company pulled in an estimated $230 million while in operation for nearly a decade or so. Nexus was located in Verona before the company’s campus was auctioned off for $3.4 million in 2023 after the property went into foreclosure.

In court Tuesday, when asked to describe what he did by Chief U.S. District Judge Elizabeth K. Dillon, Moore said the company “grew and grew and grew.” Perhaps suggesting Nexus wasn’t prepared for such growth, he added “and mistakes were made.”

But when Dillon asked Moore if he agreed that his actions were willful, he replied, “Yes, your honor.”

Moore will be ordered to pay restitution of more than $3 million.

Federal prosecutors, as part of the plea agreement, will not ask for more prison time than what the advisory sentencing guidelines suggest. The federal government will also recommend a 2-level reduction in Moore’s offense level if he sticks to the plea agreement.

A sentencing date for Moore, who remains free on bond, has not been set.

In December, Dillon noted in a court document that Donovan is also under investigation by a federal grand jury, reportedly for non-payment of taxes. He has not been charged in connection with the case.

But Moore and Donovan, along with former Nexus employee Timothy Shipe, are facing felony charges in an unrelated Augusta County case after being accused in 2022 of stealing $426,000 from Zachary Cruz, the brother of convicted Florida school shooter Nikolas Cruz. The county trial will take place in March.

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Brad Zinn is the cops, courts and breaking news reporter at The News Leader. Have a news tip? Or something that needs investigating? You can email reporter Brad Zinn (he/him) at bzinn@newsleader.com. You can also follow him on X (formerly Twitter).

This article originally appeared on Staunton News Leader: An Augusta County businessman was convicted of tax fraud Tuesday