A Halifax County man, Steve Hardie Anderson, has been indicted in a tax fraud investigation and faces charges of misappropriating nearly $1.3 million in taxpayer funds.

Anderson, who is a retired compliance supervisor for the Virginia Department of Taxation, was indicted May 19 by a Richmond grand jury on felony charges of embezzling public funds and altering computer data for larceny.

The offenses date back to 2013.

The Office of the Attorney General is prosecuting the case in Richmond City Circuit Court.

Anderson is scheduled to be arraigned July 6.

The charges carry a sentence of up to 25 years in prison, according to a news release issued Wednesday by the Virginia OSIG.

The Virginia Office of the State Inspector General conducted a yearlong investigation after Virginia Tax did an internal investigation and informed OSIG about the allegations involving Anderson and two Virginia Tax employees who allegedly gave him access to Virginia Tax computer systems and confidential taxpayer accounts, the OSIG news release states.

“This was a complicated and serpentine investigation that reached a successful conclusion through the perseverance and thoroughness of our special agents here at OSIG and in collaboration with Virginia Tax and OAG staff,” said State Inspector General Michael C. Westfall. “This is another example of the hard work that state agencies provide the citizens of the Commonwealth.”

Anderson has repaid the Commonwealth about $250,000, according to the OSIG news release.