Flagler Tax Service Investigation Handed Off To Federal Authorities


Bunnell, FL - Over 100 cases from victims of an alleged scheme to defraud clients of a local tax service are now in the hands of federal investigators.

“Detectives of our General Assignment Unit have been busy investigating over 100 cases,” Flagler Sheriff Rick Staly said. “They’ve analyzed thousands of documents and conducted upwards of 85 interviews with potential victims.” 

According to Sheriff Staly, the FCSO’s federal partners decided to adopt the investigation, adding that the federal court system is more likely to hold the offender accountable.

“If you have not filed a complaint and believe you may be a victim please file a report with the IRS,” added Staly.

The Flagler County Sheriff’s Office (FCSO) began their investigation into Flagler Tax Services—more specifically an employee, 66-year-old Robert “Bob” Newsholme—sometime in August 2021. In early September, FCSO, along with members of the Volusia Sheriff’s Office and IRS Criminal Investigations, executed a search warrant at the Bunnell office of Flagler Tax Service.

During that search, detectives seized multiple computers, files, and other evidence potentially linked to numerous incidents of a massive organized scheme to defraud clients.

The allegations against Newsholme currently include grand theft, organized scheme to defraud, and embezzlement.

FCSO urges residents who may be a victim or know someone that may be a victim and you have not already filed a report with FCSO to contact the IRS Criminal Investigation Tampa Field Office at TampaFieldOffice@ci.irs.gov or call 904-661-3413. If you have already filed a report with FCSO you do not need to call IRS Criminal Investigations.