A federal grand jury in Chicago has indicted an Illinois business owner on charges related to tax crimes. The indictment accuses Steven Cordell, a resident of Chicago and the owner of Starfish Transportation Inc., of failing to pay employment taxes, not filing business tax returns, committing wire fraud, and making false statements on a loan application.
The indictment claims that Cordell was responsible for withholding Social Security, Medicare, and income taxes from his employees' wages and remitting those funds to the IRS each quarter. However, it is alleged that for certain quarters between 2018 and 2024, Cordell withheld taxes but did not fully remit them to the IRS.
Further allegations state that Cordell submitted false applications on behalf of his business to the Paycheck Protection Program (PPP) and the Coronavirus Economic Relief for Transportation Services (CERTS) program. These programs were established to assist Americans economically affected by the COVID-19 pandemic. The indictment alleges that he submitted unfiled tax returns and false financial data in these applications. Additionally, he allegedly failed to disclose a PPP loan received by Starfish Transportation when applying for a CERTS grant. According to the indictment, Cordell obtained $247,822.51 in fraudulent PPP loans and $598,574.21 in fraudulent CERTS grants.
Cordell is also accused of intentionally failing to file corporate income tax returns for Starfish Transportation from 2019 through 2023. The total alleged tax loss caused by Cordell's actions amounts to over $600,000.
If convicted, Cordell could face severe penalties: up to 30 years in prison for filing a false loan application, up to 20 years for wire fraud, up to five years for not paying employment taxes, and up to one year per charge for failure to file returns. A federal district court judge will determine any sentence after considering U.S. Sentencing Guidelines and other statutory factors.
The announcement was made by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. The case is being investigated by IRS Criminal Investigation and the Small Business Administration’s Office of Inspector General. Trial Attorneys Regina Jeon and Thomas Flynn of the Tax Division are prosecuting.
It is important to note that an indictment is merely an allegation; all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.