Tax evasion scheme operated for 10+ years
On July 30, 2012, in New Haven, Conn., Sherwood Schaub, 70, (AKA: Andy Sherwood), was sentenced to 30-months in federal prison and 2-years of supervised confinement for operating a decade old tax evasion scheme. Mr. Sherwood agreed to cooperate with the IRS and to pay all back taxes, penalties and interest.
Earlier, on February 28, 2012, Mr. Schaub “Mr.Sherwood” had waived his right to indictment and pleaded guilty to 2 counts of tax evasion. Court documents demonstrated that Schaub has owned and operated an executive search business as well as other businesses that had used a variety of entity names, including Goodrich & Sherwood Company, Goodrich & Sherwood Associates, Inc., Whittenwood Associates, Inc., Whittenwood International, Inc., GSA International, Inc., Stanton Chase of New York and G&S Holding Limited Partnership.
Wow! That’s a lot of deception and paperwork to keep track of… According to transcripts, from 1994 through 2006, Schaub’s business entities repeatedly failed to pay federal taxes that had been withheld from employees’ paychecks. During these 12 years, the IRS assessed Schaub penalties for not paying the withholding taxes, but he ignored the IRS and did not pay the penalties. Prosecutors made the case that the scheme involved Schaub willfully attempting to avoid paying taxes by causing his business entities to operate under various names and his personal income to be paid in the name of his wife, rather than his own, by means of checks and wire transfers to her bank account.
U.S. Attorney’s office weighs-in on tax evasion scheme
Thomas Carson, a spokesman for U.S. Attorney David B. Fein, said Schaub “willfully attempted to avoid paying taxes by causing his business entities to operate under various names, and by causing his income to be paid in his wife’s name rather than his own in the form of checks and wire transfers to her bank account.”
Carson also said that in 2005, Schaub also received $164,100 in taxable income deposited into his wife’s bank account, but failed to pay taxes on the income and failed to file an income tax return that year.
Are you anxious about something the IRS might frown over?
If you got involved in something by accident or on purpose that might be considered tax fraud, tax evasion, or money laundering, it might be wise to seek confidential legal counsel from a tax attorney. A taxpayers’ attempt to right a wrong will often rectify the worst of circumstances with the best possible outcome when compared to those who wait until an investigation uncovers wrongdoing. By waiting to be “found out,” you are more likely to be charged with a crime and face serious consequences. Call tax lawyer Paul Staley to schedule a no cost, confidential meeting at (619) 235-4095.