Bath Twp. man charged with evading Nearly $400,000 in taxes
A criminal information was filed charging John W. Hufgard with three counts of tax evasion for the years 2007, 2008 and 2009 after he evaded nearly $400,000 in taxes by selling items for cash, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Hufgard, 59, resides in Bath, Ohio, according to court records.
The information alleges that Hufgard, the sole proprietor of Universal Service and Repair, Limited, Hufgard sold manufacturing racks to metal scrap dealers, and failed to report the proceeds on his federal income tax returns.
Hufgard concealed his scheme by selling racks for cash, by depositing business income into his personal account, business income diverted into his personal account, and falsely recording business income as short term loans from himself, according to the information.
He also tried to conceal his scheme by moving large amounts of scrapped metal racks, long distances, to scrap dealers who were willing to pay him in cash rather than using unknown dealers who might pay by check, according to the information.
Through this scheme, Hufgard evaded approximately $397,659 in federal taxes.
If convicted, defendant’s sentence will be determined by the court after review of factors unique to this case, including defendant’s prior criminal record, if any, defendant’s role in the offenses, and the characteristics of the violations. In all cases the sentence will not exceed the statutory maximum and in most cases they will be less than the maximum.
This case is being prosecuted by Special Assistant United States Attorney Perry D. Mastrocola, following an investigation by the Internal Revenue Service Criminal Investigation Division.
An information is only a charge and is not evidence of guilt. Defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.