Precious Metals Broker Pleads Guilty to Tax Evasion
MADISON, WIS. -- John W. Vaudreuil, United States Attorney for the Western District of Wisconsin, announced that David Stott, 51, Verona, Wis., pleaded guilty on October 12, 2016, in U.S. District Court in Madison to federal income tax evasion. U.S. District Judge James Peterson scheduled sentencing for December 15, 2016, at 1:00 p.m. Stott faces a maximum penalty of five years in federal prison and a $250,000 fine. Stott was charged with this offense in March 2016.
The indictment alleged that Stott, who worked as a precious metals broker as the owner and operator of a business in Verona called Colorado Gold, attempted to evade taxes he owed for 2010, 2011 and 2012 by underreporting his gross income for each of those years. At the plea hearing, Stott admitted that he e-filed his tax returns to the IRS for tax years 2010, 2011, and 2012, and underreported his commission income from Colorado Gold in all three years, which totaled $612,797, and caused a tax loss of $208,734. Stott also admitted he underreported his commission income on his 2007, 2008, and 2009 tax returns as well, which caused an additional tax loss of $185,825. Over the six-year span (2007-2012), Stott evaded $394,559 in income taxes.
The charges against Stott are the result of an investigation by IRS Criminal Investigation. The prosecution of this case is being handled by Assistant U.S. Attorney Daniel J. Graber.