\BUNNELL, Fla. — On August 7, 2024, Robert “Bob” Newsholme, who had been the subject of local and federal investigations into allegations of fraud and embezzlement since 2021, was arrested in Las Vegas. Newsholme, 68, was arrested after Flagler County Sheriff’s Office detectives determined he had conducted an organized scheme to defraud clients of his tax business.
In August 2021, FCSO fraud investigators opened an investigation into Newsholme and his business, Flagler Tax Service, after receiving numerous complaints that Newsholme had defrauded clients. Working with the Internal Revenue Service and the Volusia Sheriff’s Office, detectives in FCSO’s General Assignment Unit discovered that Newsholme took money from clients to pay their personal or business income taxes and never gave that money to the IRS. They also found that Newsholme was not a certified public accountant as most of his clients believed he was.
After opening over 100 cases from Newsholme’s victims, detectives turned the investigation over to the IRS Criminal Investigation in October 2021. However, in August 2023, Sheriff Rick Staly spoke with the IRS, who told him that because of a federal technicality they would not be pursuing the case. Sheriff Staly then directed that FCSO fraud investigators reopen the case locally. After a yearlong investigation that included examining all previous complaints and reviewing banking, credit card, and federal tax records, detectives were able to determine Newsholme had defrauded victims of hundreds of thousands of dollars.
During the investigation, detectives learned that Newsholme had moved to Las Vegas. With assistance from the Las Vegas Metropolitan Police Department, detectives attempted to interview Newsholme but he refused to answer the door. Investigators were then able to obtain an arrest warrant for Newsholme in July 2024.
The LMVPD, in collaboration with the United States Marshals Service Nevada Violent Offender Task Force, was requested to assist in locating Newsholme, who had moved after detectives tried to interview him. An in-depth investigation determined that Newsholme was residing in a non-profit independent living facility for seniors, where he was attempting to avoid detection.
On August 7, Newsholme was located and arrested on nine counts of Grand Theft and one count of Organized Scheme to Defraud. He was subsequently booked into the Clark County Detention Center in Las Vegas as a fugitive from justice and is being held on no bond. Newsholme will later be extradited back to Flagler County.
“This was an extensive and thorough investigation that kept our detectives busy with thousands of documents, many subpoenas, and dozens of interviews starting in 2021 and then again over the past year after we took the investigation back from the IRS,” said Sheriff Staly. “Although we were disappointed to learn that federal authorities would not be pursuing charges, we knew when we took back over the investigation that our General Assignment Unit had a solid case that would result in an arrest.”
“The arm of the law is long, and this thief learned that hiding out and trying to be a hermit in Las Vegas was not far enough to get away,” Sheriff Staly added. “I thank the Las Vegas Metropolitan Police Department and the U.S. Marshals for helping us find and apprehend him so that he can face justice for stealing the hard-earned money of Flagler County residents that trusted him with their taxes.”
