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Press Release

Business Owner Indicted On Tax Fraud

For Immediate Release
U.S. Attorney's Office, Western District of New York

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a three count indictment charging David B. Schmitt, 63, of North Tonawanda, NY, with tax evasion and obstructing the administration of the Internal Revenue Service laws.  The charges carry a maximum penalty of five years in prison and a $100,000 fine.

Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that according to the indictment, the defendant owned and operated two different delivery businesses known as Three Kids Trucking Inc., and 1553 Harlem Road Inc. Between April 2007 and June 2013, while Schmitt owned and operated these businesses, he willfully attempted to evade and defeat the payment of a large part of the federal employment taxes owed by the two businesses in an amount exceeding $500,000.  The defendant did so by, among other things, filing false forms with the IRS, having nominees open bank accounts to conduct business for the corporations and created a fraudulent trust for one of the corporations.

The defendant was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy. Schmitt was released and is due back in court on November 20, 2015.

The indictment is the result of an investigation by Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. 

Updated November 12, 2015