An Ohio man will spend the next 18 months in federal prison after pleading guilty to income tax evasion.
John W. Hufgard, 59, of Bath Township, Ohio, must also pay restitution to the Internal Revenue Service of $397,659
Hufgard was the sole proprietor of Universal Service and Repair. Hufgard sold manufacturing racks to metal scrap dealers, and failed to report the proceeds on his federal income tax returns.
Hufgard concealed his scheme by selling racks for cash, depositing business income into his personal account, diverting business income into his personal account, and falsely recording business income as short term loans from himself, according to court documents.
He also tried to conceal his scheme by moving large amounts of scrapped metal racks to buyers greatest distances away. Hufgard preferred these dealers because they were willing to pay him in cash rather than rather using unknown dealers who might pay by check, according to court documents.
Through this scheme, Hufgard evaded approximately $397,659 in federal taxes.
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