Bath Township Man Sentenced To 18 Months In Prison For Evading Nearly $400,000 In Taxes
John W. Hufgard was sentenced to 18 months of incarceration and ordered to pay restitution of $397,659, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Hufgard, age 59, of Bath Township, was also sentenced to two years of supervised release by U.S. District Judge Patricia A. Gaughan.
Hufgard pleaded guiltt to three counts of income tax evasion (for the 2007, 2008 and 2009 income tax years) on November 26, 2012.
Hufgard was 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 court documents.
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 court documents.
Through this scheme, Hufgard evaded approximately $397,659 in federal taxes.
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.