On October 22, 2013, psychiatrist Patricia Hough was convicted in federal court in Fort Myers, Florida of nine counts of conspiring to defraud the United States and filing a false tax returns by not disclosing millions of dollars in income on her federal income tax
The indictment stated she and her husband, Dr. David Leon Fredrick, used foreign bank accounts to conceal their income from the sale of a Caribbean medical school and then used the funds in their undeclared accounts to purchase an airplane, two homes in North Carolina and a condominium in Sarasota, Fla. Fredrick also transferred more than $1 million to his relatives.
Fredrick, who was Hough’s co-defendant, has had a warrant out for his arrest since his failure to appear in court for his arraignment.
The conspiracy charge carries a maximum penalty of five years in prison and a $250,000 fine. The false return charges each carry a maximum penalty of three years in prison and a $250,000 fine.