Maryland Auto Parts And Scrap Metal Dealers Convicted Of Tax Fraud
GREENBELT, Md. (WJZ) -- Two Maryland auto parts and scrap metal dealers were convicted of tax fraud on Friday.
Robert Underwood, 72, and Deborah Underwood, 63, both of Clinton, Maryland, were convicted by a federal jury on one count of conspiracy to defraud the IRS and four counts of filing false income tax returns.
According to court documents and evidence presented at their seven-day trial, the Underwood's operated a used auto part 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 Underwood's requested to be paid in cash for their scrap metal sales and conspired to conceal from the IRS their subsequent 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 Underwood's also filed a false 2012 partnership tax return for their business that did not report all gross receipts of the business.
Each faces a maximum sentence of five years in prison for the conspiracy count and three years in prison for each of four counts of filing a false tax return.
