Former President of Omni Facility Pleads Guilty to Fraud and Tax Evasion
A Plymouth, Michigan, man pleaded guilty today to wire fraud and tax evasion in the U.S. District Court for the Eastern District of Michigan, the Justice Department and the Internal Revenue Service (IRS) announced.
According to court documents, Michael Stover was the president of Omni Facility Services, a janitorial company located in Southfield, Michigan, and as part of his responsibilities Stover approved and paid subcontractors. Stover created a fictitious subcontractor called Envirovac Inc., and from 2004 through 2010, he created fictitious invoices from Envirovac that billed Omni for work that was never performed. Stover then approved payment of those invoices on Omni’s behalf, and over the course of this scheme, Stover embezzled approximately $2,178,423 from Omni. On his tax return for 2007, Stover evaded taxes by not reporting the income he embezzled from Omni.
Stover faces a statutory maximum sentence of 20 years in prison on the wire fraud count and five years in prison on the tax evasion count. He also faces three years of supervised release and a maximum fine of $250,000 for each count. U.S. District Judge Stephen J. Murphy set sentencing for Jan. 23, 2015.
The case was investigated by special agents of IRS-Criminal Investigation. Trial Attorneys Yael T. Epstein and Kenneth C. Vert of the Tax Division prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.