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Justice News

Department of Justice
U.S. Attorney’s Office
District of New Jersey

FOR IMMEDIATE RELEASE
Monday, June 24, 2013

Business Owner Admits Evading Taxes On More Than $300,000

NEWARK, N.J. – A Morris County, N.J., man today admitted evading personal income taxes on more than $300,000 in income over four years, U.S. Attorney Paul J. Fishman announced.

Robert Schaefer, 63, of Montville, N.J., pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with tax evasion.

According to documents filed in this case and statements made in court:

Schaefer owned and operated Asphalt Maintenance and Stripping Inc. (Asphalt Maintenance), an asphalt installation, maintenance, and snow removal company, also located in Montville. Schaefer was required to include income earned by Asphalt Maintenance on his individual IRS 1040 form. During the calendar years 2007 through 2011, Schaefer diverted approximately $303,000 in income earned by Asphalt Maintenance to himself and his personal accounts. He did this by arranging for Asphalt’s customers to pay for service by cash and by checks payable to “cash” or to “Robert Schaefer.” Schaefer then cashed these checks, retained the proceeds for his personal use, and failed to include the proceeds on individual income tax form 1040 that he signed and filed with the IRS.

Tax Year

Approximate Date
Tax Return Filed

Approximate
Unreported Income

Approximate
Tax Due and Owing

April 15, 2008

$ 44,651

$ 11,665
 

2008

April 15, 2009

  74,754

  22,618
 

2009

April 15, 2010

  77,180

  23,236
 

2010

April 15, 2011

  54,508

   8,495
 

2011

April 15, 2012

  51,866

  12,555

The count of tax evasion to which Schaefer pleaded guilty is punishable by a maximum potential penalty of five years in prison and a fine of $250,000. Sentencing is scheduled for Oct. 10, 2013.

U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Lorraine S. Gerson of the Economic Crimes Unit in Newark.

13-265

Defense counsel: Alan Zegas Esq., Chatham, N.J.

Schaefer Information

2007
Updated August 20, 2015