Owners of Maryland Auto Parts Company Indicted for Tax Fraud
A federal grand jury sitting in Greenbelt, Maryland, returned an indictment, which was unseal today, charging a married couple with conspiracy to defraud the United States and four counts of filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert K. Hur for the District of Maryland.
According to the indictment, Robert M. Underwood and Deborah J. Underwood, operated a used automobile parts and scrap metal business in Clinton, Maryland from 2009 through 2012 under the names “B Underwood’s Used Auto Parts” and “B Underwood Used Auto Parts, LLC.” The business allegedly purchased used and salvage cars, stripped them for parts to resell, and sold the remains to a Baltimore-based scrap yard.
The indictment charges that the Underwoods conspired to conceal the receipt of cash from the sale of scrap metal from their accountants and from IRS auditors. The indictment further alleges that the Underwoods filed false tax returns that did not include all the gross receipts of their business.
If convicted, the Underwoods face a maximum penalty of five years in prison for the conspiracy count and three years in prison for each false tax return count. They also face a period of supervised release, restitution, and monetary penalties. An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hur thanked special agents of IRS Criminal Investigation, who investigated the case, and Assistant U.S. Attorney David I. Salem and Tax Division Trial Attorney Michael Vasiliadis, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.