UPDATE 6/9/2019: A married Clinton couple, Robert M. Underwood, and his wife Deborah J. Underwood, were convicted by a federal jury of one count of conspiracy to defraud the Internal Revenue Service (IRS) and four counts of filing false income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert K. Hur for the District of Maryland.
“The jury’s guilty verdicts embody the formidable commitment of the Tax Division, along with its partners in the United States Attorney’s Office and the IRS, to prosecute business owners, who cheat the tax system in violation of our criminal laws and in doing so also gain an unfair advantage over other small business owners,” stated Principal Deputy Assistant Attorney General Zuckerman.
“Choosing not to pay your taxes and causing hardworking taxpayers to bear the brunt cannot be tolerated and today’s verdict reinforces that principle,” said Don Fort, Chief, IRS Criminal Investigation. “The conviction of the Underwoods validates the most basic principle of our agreement with the American public that everyone must pay their fair share and we will hold those who cheat the system accountable.”
According to court documents and evidence presented in court, the Underwoods operated a used automobile parts and scrap metal business in Clinton under the names “B Underwood’s Used Auto Parts” and “B Underwood Used Auto Parts LLC.” The business purchased used and salvage cars, stripped the cars for parts to resell, and sold the remaining scrap metal to a Baltimore-based scrap yard.
The Underwoods requested to be paid in cash for their scrap-metal sales and conspired to conceal from the IRS their subsequent receipt of substantial amounts of cash. The Underwoods filed a false amended individual income tax return for 2010 and false individual income tax returns for 2011 and 2012 with the IRS. The false tax returns did not include the full gross receipts from the sales. The Underwoods also filed a false 2012 partnership tax return for their business that did not report all gross receipts of the business.
The Underwoods each face a maximum sentence of five years in prison for the conspiracy count and three years in prison for each count of filing a false tax return. The Underwoods also face a term of supervised release and monetary penalties, including restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hur thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney David I. Salem and Trial Attorney Michael C. Vasiliadis of the Justice Department’s Tax Division, who are prosecuting the case.
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4/17/2018: A federal grand jury has indicted Robert M. Underwood, age 71, and his wife Deborah J. Underwood, age 62, both of Clinton, on charges of conspiracy to defraud the United States and four counts of filing false tax returns.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment, the Underwoods operated a used automobile parts and scrap metal business in Clinton, Maryland from 2009 through 2012 under the names “B Underwood’s Used Auto Parts” and “B Underwood Used Auto Parts, LLC.” The business allegedly purchased used and salvage cars, stripped them for parts to resell, and sold the remains to a Baltimore-based scrap yard.
The indictment charges that the Underwoods conspired to conceal the receipt of cash from the sale of scrap metal from their accountants and from IRS auditors. The indictment further alleges that the Underwoods filed false tax returns that did not include all the gross receipts of their business.
If convicted, the Underwoods face a maximum penalty of five years in prison for the conspiracy count and three years in prison for each false tax return count. They also face a period of supervised release, restitution, and monetary penalties.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur and Principal Deputy Assistant Attorney General Zuckerman thanked Special Agents of IRS Criminal Investigation, who investigated the case. Mr. Hur thanked Assistant U.S. Attorney David I. Salem and Tax Division Trial Attorney Michael Vasiliadis, who are prosecuting the case.
