Owner of Maryland Construction Company Pleads Guilty to Tax Evasion

U.S. Law Review

According to court documents, Jerry Lee Redman of Severn, Maryland, owned Redman Services Inc. (RSI), a paving and construction company.

For at least 2015 through 2018, Redman filed corporate income tax returns for RSI that underreported the business’s gross receipts. Redman caused customers to write checks to him personally, instead of to RSI, and then deposited those checks into his personal bank account.

Those payments were not reported as gross receipts on RSI’s corporate returns. During the same years, Redman also did not report other income that he received from RSI. Redman withdrew and caused others to withdraw funds from RSI’s business bank account to pay for his personal expenses, but Redman did not report those funds as income on his own tax returns. Some of the withdrawals for personal expenses were also falsely deducted as business expenses on RSI’s corporate returns. Redman’s conduct caused a loss to the IRS of approximately $666,113.

If convicted, Redman faces a maximum sentence of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. IRS-Criminal Investigation is investigating the case.

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