IRS: Two men indicted on tax fraud and operating an unlicensed money transmitting business
IRS.:
https://www.irs.gov/compliance/criminal-investigation/two-men-indicted-on-tax-fraud-and-operating-an-unlicensed-money-transmitting-business
Albuquerque, NM —
David Wellington of Albuquerque and Jerry Shrock of Meadowview, Virginia, were indicted on June 23 by a federal grand jury charging them with conspiracy to defraud the United States. Wellington faces an additional count of operation of an unlicensed money transmitting business.
Shrock is scheduled for an arraignment on July 15, while Wellington is scheduled to make an initial appearance on July 7.
According to the indictment, since at least 2005, Wellington and his business partner operated National Business Services, which promoted, sold and created Limited Liability Companies (LLCs) under New Mexico State Law.
For many clients, National Business Services allegedly would open bank accounts under the names and IRS employer identification numbers (EIDs) of the LLCs, and the clients – whose names were not associated with the bank accounts - would have access to the funds in those accounts.
Since at least 2006, Shrock was a client of Wellington and National Business Services.
Through National Business Services, Wellington allegedly created multiple LLCs in New Mexico for Shrock, including White Top Enterprise LLC. National Business Services allegedly opened a bank account in the business name and EID of White Top Enterprise and provided Shrock with access to the funds in the account.
Between May 9, 2011, and June 30, 2015, Shrock allegedly deposited and withdrew approximately $4,875,940, of which at least
$4,347,101 was income for which Shrock never filed a personal or business tax return with the IRS.
At
the time of the deposits and withdrawals, Shrock was subject to an outstanding IRS lien for unpaid taxes, penalties and interest in the amount of approximately $1 million.
Because it was not in his name, using the
White Top Enterprise account allegedly allowed Shrock to generate and access income while evading both the outstanding assessment and personal and business income taxes.
An indictment is only an allegation. Defendants are presumed innocent unless and until proven guilty.
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What kind of person even comes up with such a scam?
😬
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