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Tue Jun 29, 2021, 10:53 AM

IRS: Two men indicted on tax fraud and operating an unlicensed money transmitting business







IRS.:

https://www.irs.gov/compliance/criminal-investigation/two-men-indicted-on-tax-fraud-and-operating-an-unlicensed-money-transmitting-business

Albuquerque, NM David Wellington of Albuquerque and Jerry Shrock of Meadowview, Virginia, were indicted on June 23 by a federal grand jury charging them with conspiracy to defraud the United States. Wellington faces an additional count of operation of an unlicensed money transmitting business.

Shrock is scheduled for an arraignment on July 15, while Wellington is scheduled to make an initial appearance on July 7.

According to the indictment, since at least 2005, Wellington and his business partner operated National Business Services, which promoted, sold and created Limited Liability Companies (LLCs) under New Mexico State Law.
For many clients, National Business Services allegedly would open bank accounts under the names and IRS employer identification numbers (EIDs) of the LLCs, and the clients
whose names were not associated with the bank accounts - would have access to the funds in those accounts.

Since at least 2006, Shrock was a client of Wellington and National Business Services. Through National Business Services, Wellington allegedly created multiple LLCs in New Mexico for Shrock, including White Top Enterprise LLC. National Business Services allegedly opened a bank account in the business name and EID of White Top Enterprise and provided Shrock with access to the funds in the account.
Between May 9, 2011, and June 30, 2015, Shrock allegedly deposited and withdrew approximately $4,875,940, of which at least $4,347,101 was income for which Shrock never filed a personal or business tax return with the IRS.

At the time of the deposits and withdrawals, Shrock was subject to an outstanding IRS lien for unpaid taxes, penalties and interest in the amount of approximately $1 million.
Because it was not in his name, using the White Top Enterprise account allegedly allowed Shrock to generate and access income while evading both the outstanding assessment and personal and business income taxes.

An indictment is only an allegation. Defendants are presumed innocent unless and until proven guilty.
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What kind of person even comes up with such a scam?
😬

9 replies, 649 views

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Reply IRS: Two men indicted on tax fraud and operating an unlicensed money transmitting business (Original post)
Budi Jun 2021 OP
SheltieLover Jun 2021 #1
Budi Jun 2021 #3
SheltieLover Jun 2021 #7
berni_mccoy Jun 2021 #2
Budi Jun 2021 #5
lindysalsagal Jun 2021 #4
Hugin Jun 2021 #6
Budi Jun 2021 #8
Hugin Jun 2021 #9

Response to Budi (Original post)

Tue Jun 29, 2021, 11:02 AM

1. K&R!

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Response to SheltieLover (Reply #1)

Tue Jun 29, 2021, 11:14 AM

3. Helloooo SheltieLover

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Response to Budi (Reply #3)

Tue Jun 29, 2021, 11:31 AM

7. Hi Budi!

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Response to Budi (Original post)

Tue Jun 29, 2021, 11:09 AM

2. " What kind of person even comes up with such a scam?"

 

Answer: Republicans.

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Response to berni_mccoy (Reply #2)

Tue Jun 29, 2021, 11:17 AM

5. The Republican Party is just a big old club for crooks, ain't it.

That's all they've ever been.

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Response to Budi (Original post)

Tue Jun 29, 2021, 11:15 AM

4. Regardless of the terminology in a law, someone will eventually find a scam in it.

Humans are reliably weak and neglect to enforce enough details that someone will find a workaround for at least a period of time.

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Response to Budi (Original post)

Tue Jun 29, 2021, 11:20 AM

6. Hmm, I wonder how one would go about starting a licensed money RECIEVING business?

I'll need to look into that.

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Response to Hugin (Reply #6)

Tue Jun 29, 2021, 11:33 AM

8. LOL. As common as it is, I guess the key to it's success is not to mess with the IRS.

Good luck..an' maybe pm me with details..K?

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Response to Budi (Reply #8)

Tue Jun 29, 2021, 12:51 PM

9. Sure thing.

If they're transmitting it, I'm willing to receive it. Fully licensed and bonded, of course.

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