Springfield Business Owner Sentenced for Filing False Tax Returns
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a Springfield, Mo., business was sentenced in federal court today for filing false tax returns on more than $1.9 million of income over a five-year period.
Stephen J. Schroff, 53, of Springfield, was sentenced by U.S. District Judge Beth Phillips to two years in federal prison without parole. The court also ordered Schroff to pay $600,023 in restitution to the Internal Revenue Service.
Schroff was the owner and operator of Stephen Schroff, Inc., doing business as ABC Roofing in Springfield.
On Sept. 25, 2014, Schroff pleaded guilty to filing a materially false tax return. Schroff admitted that he filed false federal income tax returns for the years 2005 through 2009 by failing to report $1,925,622 of income.
According to court documents, during the commission of this offense, Schroff moved from a 3,000-square-foot home into a 4,000-square-foot home. Schroff also owned a Cadillac Escalade, a Chevy Corvette, a lake house, and a boat. Schroff invested money in a partnership that acquired rental property and began the development of a residential subdivision.
Schroff admitted that he concealed income from his business. In 2007 Schroff began diverting business receipts from ABC Roofing by cashing roofing customers’ checks instead of depositing them in the business bank account, and by depositing roofing customers’ checks into secret accounts at other banks. Schroff did not claim any of the embezzled business receipts as income when he filed federal tax returns in 2007, 2008 and 2009. In total, Schroff failed to report $1,223,572 of income from the embezzlement scheme.
Schroff’s actions resulted in a total tax loss to the federal government of $600,023.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by IRS-Criminal Investigation and the IRS-Special Enforcement Program.