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Press Release

Owner Of Recycling Business Pleads To Tax Fraud

For Immediate Release
U.S. Attorney's Office, Western District of North Carolina

CHARLOTTE, N.C. – Matthew Moretz, 31, of Taylorsville, N.C., appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to one count of filing a false tax return, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.


U.S. Attorney Rose is joined in making today’s announcement by Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).


According to filed documents and today’s court proceedings, from April 2010 to March 2011, Moretz collected unemployment income from the North Carolina Division of Employment. However, beginning in or about March 2010 and continuing through in or about 2013, Moretz was self-employed as the owner of MJM Recycling, a scrap metal business. From tax year 2010 through tax year 2013, Moretz concealed significant personal earnings from his business from the IRS. During the relevant time period, Moretz failed to disclose or provide records from all of bank accounts to his bookkeeper and tax return preparers.


According to filed documents and today’s court proceedings, for years 2010 through 2013, Moretz earned additional personal income totaling approximately $529,622.44 that Moretz failed to report on his U.S. Individual Income Tax Returns Form 1040 filed with the IRS. Specifically, Moretz failed to report cash deposits totaling $99,344.39, $194,675.59, $124,432.58, and $111,169.88, respectively, for 2010 through 2013. As a result of the unreported taxable income, Moretz had additional tax due and owing of approximately $116,409.38 from 2010 to 2013.


Moretz was released on bond after his plea hearing. The false tax return charge carries a maximum prison term of three years and a $250,000 fine. As part of his plea agreement, Moretz has agreed to pay restitution of $116,409.38 to the IRS.


The investigation was led by IRS-CI. Assistant U.S. Attorney Jenny G. Sugar, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.


Updated February 15, 2017