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Justice News

Department of Justice
U.S. Attorney’s Office
Western District of New York

FOR IMMEDIATE RELEASE
Wednesday, February 8, 2017

North Tonawanda Business Owner Sentenced For Tax Fraud

CONTACT: Barbara Burns

PHONE: (716) 843-5817

FAX #: (716) 551-3051

 

BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that David B. Schmitt, 65, of North Tonawanda, NY, who was convicted of tax evasion, was sentenced to 30 months in prison by U.S. District Judge Elizabeth A. Wolford. The defendant was also ordered to pay restitution totaling $748,459.75.

 

Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that the defendant owned and operated delivery businesses known as Three Kids Trucking Inc. and 1553 Harlem Road Inc. Between February 2010 and June 2013, while Schmitt owned and operated these businesses, he willfully attempted to evade and defeat the payment of a large part of federal employment taxes owed by 1553 Harlem Road Inc. The defendant did so by filing false forms with the IRS, having nominees open bank accounts to conduct business for the corporation, and creating a fraudulent trust for one of the corporations. The total loss to the IRS exceeded $500,000.

 

The sentencing is the result of an investigation by Internal Revenue Service, Criminal Investigation Division, under the direction of Kathy A. Enstrom, Acting Special Agent-in-Charge.

 

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Updated February 8, 2017