FLORIDA — The two co-owners of a roofing company in Fort Myers were sentenced for evading more than $1.1 million in taxes in a scheme that diverted more than $3 million in unreported business income.
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Last week, David Aaron and Russell Ultes were given 18 and 9 months in prison, respectively, for a plan to avoid paying over $1.1 million in income taxes.
According to court documents and statements made in court, Aaron and Ultes were co-owners of Marlin Construction Group LLC (Marlin), a Fort Myers-based residential and commercial roofing company. In 2018 and 2019, Aaron and Ultes diverted millions of dollars of customer checks made out to Marlin and cashed them at check-cashing businesses in nearby counties.
Aaron and Ultes used the money to pay for things like jet skis, boats, and cars for themselves, said the US Department of Justice (DOJ).
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To carry out the scheme, the DOJ said Aaron and Ultes caused Marlin’s books and records to falsely underreport the business’s gross receipts and income for those years. Aaron and Ultes provided false information to Marlin’s tax return preparers, who unknowingly prepared false 2018 and 2019 corporate income tax returns (Forms 1120S) that did not report all gross receipts and income.
Because the income from the false corporate returns flowed through to Aaron and Ultes’ personal returns, their 2018 and 2019 personal income tax returns (Forms 1040) were similarly false, said the DOJ.
Aaron and Ultes are said to have caused a tax loss to the IRS of over $1.13 million.
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U.S. District Judge Sheri P. Chappell for the Middle District of Florida also ordered that, in addition to their prison sentences, Aaron serve three years of supervised release and pay a $50,000 fine and that Ultes serve nine months of home confinement, followed by three years of supervised release and pay a $75,000 fine.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS-Criminal Investigation investigated the case.
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Senior Litigation Counsel Stanley J. Okula Jr. and Trial Attorney Richard J. Hagerman of the Tax Division prosecuted the case with support from the U.S. Attorney’s Office for the Middle District of Florida.
