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Justice News

Department of Justice
U.S. Attorney’s Office
District of North Dakota

Wednesday, August 10, 2016

Fargo Resident Pleads Guilty to Tax Evasion

FARGO - US Attorney Christopher C. Myers announced that on August 9, 2016, Gary Spencer Smith, 61, Fargo, ND, pled guilty before US District Judge Ralph R. Erickson to an Information charging him with Attempt to Evade and Defeat the Payment of Tax.

"Gary Spencer Smith’s attempt to evade tax by failing to report his income, failing to file tax returns for 13 years, and failing to pay his taxes was a theft from the American taxpayers. It is a felony offense that carries severe consequences," said Shea Jones, Special Agent in Charge, IRS Criminal Investigation, St. Paul Field Office.  "The IRS and U.S. Attorney’s Office remain determined and vigilant in uncovering such schemes to cheat the honest taxpayers."

Beginning in 1999 through 2010, Smith concealed and attempted to conceal a large part of income from the Internal Revenue Service (IRS). Although he earned substantial income between 1999 and 2010 as an independent contractor selling steel buildings for another corporation, he failed to timely file returns with the IRS and evaded payment of most of his income taxes, which totaled approximately $243,488 during that period. In an effort to evade paying taxes, Smith created his own corporation, Strong Steel Buildings Inc., and requested that income and paychecks be made payable to his corporation rather than to him in order to avoid the filing of 1099s with the IRS.

Judge Erickson has set sentencing for Oct. 31, 2016, at 10:00 AM, at the US District Court, Fargo, ND.

Smith faces a maximum penalty of 5 years’ imprisonment, a $250,000 fine, 3 years supervised release, and a $100 special assessment.

This case is being investigated by the Internal Revenue Service - Criminal Investigation Division.

Assistant US Attorney Scott Schneider is prosecuting the case.

Financial Fraud
Updated August 10, 2016