UPDATE: Owners Of Clinton Auto Parts Company Convicted of Tax Fraud

June 9, 2019

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.

“When criminals cheat the IRS, they rob all of us as taxpayers,” said U.S. Attorney Robert K. Hur. “Prosecutions like this demonstrate that we will not tolerate those who attempt to cheat the system and will hopefully deter others from stealing taxpayer funds.”

“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.

30 Responses to UPDATE: Owners Of Clinton Auto Parts Company Convicted of Tax Fraud

  1. Anonymous on April 18, 2018 at 12:28 am

    And this is one reasons why Small Businesses are failing.

    Every time you make a buck, you end up paying the Gov’t $2 in taxes.

    • Anonymous on April 18, 2018 at 10:48 am

      If a business fails due to unpaid taxes that is because they didn’t do their research prior to starting the business and it is on them. If they can get rid of everyone that scams the system like these two are accused of, or the ones that don’t follow the rules, or the ones that flat out don’t pay taxes the law abiding tax payers might actually get a break. Unfortunately we have to pick up the slack for all the POS’s that don’t feel they have to kick in their fare share. I have no sympathy for tax evaders. Taxes have been around for centuries.

    • paul mall on June 10, 2019 at 7:14 am

      Agree. If a small business is succeeding they are probably breaking the rules, even beyond tax issues. Hopefully, they completed their safety in the work place training and sensitivity training.

    • exrep on June 10, 2019 at 3:56 pm

      and I bet you blame Obama right…racist

      • Idiot^^^ on June 13, 2019 at 8:13 pm

        Where the hell did you get racism and Obama out of that?
        Seriously? You’re a special breed of stupid. Do this country a favor and don’t have kids. For the sake of everyone.

  2. George Mulloy on April 18, 2018 at 4:54 am

    Maybe they should have filed taxes under the name Al Sharpton. He is above and beyond any American tax law.

  3. T.W. on April 18, 2018 at 9:42 am

    Tell me the names of any businesses that claims scrap metal when they get paid in cash. That will be a very short list. How bout anyone else who gets paid in cash or tips ? I am sure everyone claims it right…..uh no !

    • Anonymous on April 19, 2018 at 7:36 am

      The “everyone else does it” defense, I don’t think that will hold up in court.

    • Anonymous on April 19, 2018 at 8:08 am

      Exactly! Cause everyone is so very honest on their cash money! NOT! There are business owners and people who haven’t paid taxes in years!! At least they files theirs!

    • Anonymous on April 19, 2018 at 8:08 am

      Exactly! Cause everyone is so very honest on their cash money! NOT! There are business owners and people who haven’t paid taxes in years!! At least they files theirs!

  4. Anonymous on April 19, 2018 at 11:18 pm

    Why wont the new say it was dropped the same day that the feds made a mistake… it was the book keepers falt all charges dropped happy news is better than bad news!!!Don’t be rushed to print the truth!!

    • Anonymous on June 9, 2019 at 10:01 pm

      The guilty verdict says that you are incorrect.

  5. Anonymous on April 19, 2018 at 11:21 pm

    Feds made a mistake print the truth all charges dropped fix bad news!!!!

    • Sweet Pea on June 9, 2019 at 9:36 pm

      Totally agree. Correct news doesn’t sell papers. Just maybe there is more truth that of course doesn’t get printed.

      • Anonymous on June 11, 2019 at 8:54 pm

        SMNN will hold or disregard certain facts if it sounds better to the readers.

  6. Anonymous on April 19, 2018 at 11:25 pm

    Print the truth all charges dropped
    Bad fed work on hard working nice people

  7. Bobby on April 23, 2018 at 9:30 pm

    What would Trump do?

    • MikeInMorganza on June 10, 2019 at 8:22 am

      All charges were dropped, eh? Then please explain how they were convicted?

    • Anonymous on June 10, 2019 at 9:44 am

      Your right! Trump is a smart man!

    • Anonymous on June 10, 2019 at 11:48 am

      He would make sure the scrap metal is being recycled in the USA and then used to make American products.

      Release this couple! They are Making America Great Again.

  8. Joe on June 9, 2019 at 1:41 pm

    And sooooooooooooooooooo how ya doin’ on the 8 million dollars Al Sharpton hasn’t paid???????

  9. Anonymous on June 9, 2019 at 11:10 pm

    News flash: obviously the charges were not dropped!

  10. Anonymous on June 10, 2019 at 10:12 am

    Hey Anonymous… I guess you can’t print the ‘truth’. If the charges had of been dropped they would not have been convicted!!!! SPEAK THE TRUTH

  11. Fred Barry on June 10, 2019 at 11:34 am

    Trump will pardon them!!

    • Anonymous on June 11, 2019 at 9:29 pm

      LOL y’all are so pathetic its actually funny!

  12. Obama's Friend Al on June 10, 2019 at 11:53 am

    And yet Al Sharpton walks free. Must be his so called “privilege.”

    • Aneshia Braveboy on June 12, 2019 at 4:35 am

      Black Privilege at that.

  13. Anonymous on June 10, 2019 at 1:05 pm

    These 2 and everyone like them are nothing but crooks. They are even worst then crooks because they steal from every tax paying Marylander. I hate to see local businesses fail but if it is because they are stealing money they deserve what they get. I guarantee they had plenty of fun with the extra money they were keeping while the rest of us just scrape by on our post tax income.

  14. exrep on June 10, 2019 at 3:54 pm

    how much you want to bet their defense will be “if Donny can do it why can’t I” bet me

  15. Anonymous on June 11, 2019 at 9:32 pm

    Government can rob you blind take everything you own but heaven forbid they find out about a couple dollars they didnt their piece of.