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.

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.

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

Schaefer Information