BUSINESSMAN SENTENCED TO 2 YEARS IN PRISON FOR OBSTRUCTING THE IRS AND CONCEALING PROPERTY IN BANKRUPTCY PROCEEDINGS
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Darryl A. Stuckey, age 48, formerly of Fort Washington, Maryland today to two years in prison, followed by three years of supervised release, for corruptly obstructing the Internal Revenue Code and fraudulently concealing assets in a bankruptcy proceeding. Judge Titus also ordered Stuckey to pay restitution of $300,632.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division; Judy A. Robbins, United States Trustee for Region 4, which includes the District of Maryland; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Obstructing the IRS
According to his plea agreement, from 1996 to 2009, Stuckey served in various roles in companies that he caused to be created or purchased. Between 2004 and 2009, Stuckey engaged in a scheme to obstruct the IRS from determining his income. For example, instead of using his personal bank accounts, Stuckey used corporate bank accounts and credit cards from his businesses to pay for the majority of his personal expenses, such as gambling, child support, medical expenses, shopping, travel, gifts and entertainment.
From 2004 to 2009, although Stuckey received substantial income from the businesses he controlled, he did not file individual or corporate federal tax returns, and did not pay any federal income taxes, state income taxes, or self-employment taxes. In fact, Stuckey admitted that he had not filed individual or corporate federal tax returns since 1993.
In 2009, Stuckey caused a business he purchased, CTI/D.C., to end its use of an outside company to manage its payroll. Although Stuckey continued to have CTI/D.C. deduct Federal Insurance Contribution Act (FICA) taxes, federal income taxes and other items from the employees’ paychecks, he failed to pay over to the IRS the FICA and federal income taxes that were withheld. As a result of Stuckey’s actions, the tax loss was $300,632.
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, failing to disclose 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. Stuckey also did not disclose that he served as an officer, director, partner, managing executive or proprietor of several businesses. Evidence was also presented at today’s sentencing hearing that Stuckey spent over $45,000 on jewelry and furs within months of declaring personal bankruptcy.
United States Attorney Rod J. Rosenstein praised the IRS - Criminal Investigation, FBI and the U.S. Trustee Program’s Greenbelt office for their work in the investigation. The U.S. Trustee Program is the Department of Justice component that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Mr. Rosenstein thanked Assistant U.S. Attorney Stuart A. Berman and Trial Attorney Jeffrey Bender, with the Department of Justice’s Tax Division, who prosecuted the case.
Cain faces a maximum sentence of 30 years in prison for the conspiracy and for possession with intent to distribute oxycodone. U.S. District Judge Ellen L. Hollander has scheduled sentencing for September 3, 2013 at 12:00 p.m.
United States Attorney Rod J. Rosenstein praised the DEA, HHS Office of Inspector General and the Anne Arundel and Howard County Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kenneth S. Clark, Clinton J. Fuchs and Mushtaq Gunja, who are prosecuting this Organized Crime Drug Enforcement Task Force case.