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Press Release

Owner of Maryland Paving and Construction Company Sentenced to Prison for Tax Evasion

For Immediate Release
Office of Public Affairs

A Maryland man was sentenced today to 13 months in prison for evading his federal income taxes.

According to court documents and statements made in court, Jerry Lee Redman, of Severn, siphoned money from his own paving and construction business, Redman Services Inc. (RSI), in the form of weekly cash withdrawals that he then used to pay for personal expenses, including alcohol and gambling. Redman did not report these cash withdrawals as income on his personal tax returns for the years 2014 through 2018. He also caused some of these cash withdrawals to be falsely deducted as business expenses on RSI’s corporate tax returns. During these same years, Redman directed some of RSI’s clients to write checks payable directly to Redman instead of RSI and deposited the checks into his personal bank account. As a result, these checks were not reported as income on RSI’s corporate returns. In total, Redman’s scheme caused a tax loss to the IRS of over $660,000.

In addition to the term of imprisonment, U.S. District Judge Julie Rubin for the District of Maryland ordered Redman to serve one year of supervised release and to pay $894,338.04 in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.

IRS Criminal Investigation investigated the case.

Trial Attorneys Melissa S. Siskind and Christina M. Grimes of the Tax Division prosecuted the case.

Updated December 14, 2023

Press Release Number: 23-1425