California Man Faces Jail Time for Spending Tax Refund Given in Error

A Laguna Beach man faces jail time after failing to notify IRS authorities after a deposit of $110,000 was mistakenly put into his bank account, KCAL Reports.

A Laguna Beach man faces jail time after failing to notify IRS authorities after a deposit of $110,000 was mistakenly put into his bank account, KCAL Reports.

Stephen McDow is charged with one felony count of grand theft by misappropriation of lost property, with an enhancement for taking property worth over $65,000, after finding the money in his own checking account.

The funds were supposed to be transferred to a Los Angeles woman but she provided the IRS with a bank account that had been closed.  The account number was then later reassigned to McDow.

After the woman's attorneys contacted McDow regarding the mistake, he informed her he had already spend around $60,000 to pay off student and car loans. He offered to return the money in monthly payments but the woman was unsatisfied with the suggestion.

If convicted, McDow faces up to four years in prison.

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