Businessman Pleads Guilty to Obstructing the IRS and Concealing Property in Bankruptcy Proceedings
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Greenbelt, Maryland - Darryl A. Stuckey, age 48, formerly of Fort Washington, Maryland pleaded guilty today to corruptly obstructing the Internal Revenue Code and fraudulently concealing assets in a bankruptcy proceeding.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; the Greenbelt Office of the United States Trustee Program, the Department of Justice agency that supervises bankruptcy cases and trustees; and Special Agent in Charge Rick A. Raven of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“The law is crystal clear: people must pay their taxes,” said Rick A Raven, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “There is no gray area on this issue. Concealing assets from the court and not paying taxes is a gross violation of every American’s civic duty and deserves scrutiny. Today, Mr. Stuckey’s plea serves as a reminder that IRS Criminal Investigation is committed to maintaining the integrity of our tax system and will continuously direct its efforts at the portion of individuals who willfully choose to evade their tax obligations.”
Obstructing the IRS
According to his plea agreement, from 1996 to 2009, Stuckey served in various roles in numerous companies that he caused to be created or purchased. Many of Stuckey’s businesses listed mailboxes at a single UPS store as their business address. Between 2003 and 2009, Stuckey used corporate bank accounts and credit cards for these businesses to pay for personal expenses, such as gambling, child support, medical expenses, shopping, travel, gifts and entertainment. Stuckey used personal bank accounts to conduct only a small fraction of his personal financial transactions.
From 2004 to 2009, Stuckey received substantial income from the businesses he controlled. However, Stuckey did not file individual or corporate federal tax returns since 1993, and did not pay any federal income taxes, state income taxes, or self-employment taxes.
In 2009, Stuckey caused a business he purchased, CTI/D.C., to end its use of an outside company to manage its payroll. Stuckey continued to have CTI/D.C. deduct Federal Insurance Contribution Act (FICA) taxes, federal income taxes and other items from the employees’ paychecks, but failed to truthfully pay over to the IRS the FICA and federal income taxes that were withheld.
As a result of this scheme to obstruct the IRS from determining how much income Stuckey or his businesses received, the government contends that the tax loss was between $200,000 and $400,000.
Concealing Bankruptcy Assets
In 2007 Stuckey caused a business he organized, Yekcuts, LLC, to file for bankruptcy. Stuckey caused Yekcuts: to file a schedule of assets that failed to disclose a company bank account; and to falsely claim that Yekcuts received no gross income in 2005, 2006 and 2007.
In May 2007, Stuckey fraudulently transferred and concealed real property located at 12301 Longwater Drive, Mitchellville, Maryland, which belonged to the Yekcuts bankruptcy estate. Specifically, Stuckey caused Yekcuts to enter into a promissory note with another individual, pursuant to which Yekcuts borrowed $130,000 in exchange for a security interest in the real property. Yekcuts never sought the required permission from the bankruptcy court to enter into the loan. Stuckey directed that $121,893 of the loan proceeds be distributed as follows: $10,000 to an individual, $9,000 to a Yekcuts bank account; and $102,893 to an account for which Stuckey was the sole signatory. Within 10 days of the deposit of the funds into the accounts, Stuckey withdrew $108,380.93 from the latter bank account.
In June 2007, after learning about the loan involving the Longwater Drive property, counsel for one of the Yekcuts creditors obtained a court order to depose Stuckey. Stuckey immediately caused Yekcuts to move to dismiss its bankruptcy, which the court denied. During the subsequent deposition, the government contends that Stuckey lied about the loan, his ownership interest in Yekcuts, compensation received from and expenses paid by Yekcuts, the existence of a second bank account maintained by Yekcuts and other matters.
As a result of Stuckey’s concealment of property during the Yekcuts bankruptcy, the loss to the bankruptcy estate exceeded $120,000.
Additionally, in October 2007 Stuckey filed for personal bankruptcy. Stuckey filed false schedules with the bankruptcy court, lying about: his transfer in May 2007 of real property located at 11950 Autumnwood Lane, Fort Washington, Maryland into a trust fund of which he was the sole beneficiary; and that he served as an officer, director, partner, managing executive or proprietor of several businesses.
Stuckey faces a maximum sentence of three years in prison and a fine of $250,000 for the tax obstruction and five years in prison and a fine of $250,000 for concealing assets in the bankruptcy proceeding. U.S. District Judge Roger W. Titus scheduled sentencing for June 6, 2013 at 1:00 p.m.
United States Attorney Rod J. Rosenstein praised the IRS - Criminal Investigation and the U.S. Trustees Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sean O’Connell and Jeffrey Bender, Trial Attorney with the Department of Justice’s Tax Division, who are prosecuting the case.