The final sentencing has been delivered in a significant tax evasion case involving three individuals who orchestrated a scheme over several years. This marks the conclusion of a legal process that dealt with millions in unpaid taxes.
Stacy Underwood, aged 53 from Albuquerque, was sentenced to time served. Her sentence includes three years of supervised release and an obligation to pay over $5.5 million in restitution due to her involvement in the scheme.
David Wellington, aged 66 and also from Albuquerque, received a previous sentence of 40 months in prison. He was ordered to pay over $5.5 million in restitution for his role in creating and managing the tax evasion scheme. Additionally, he is permanently banned from operating any business that advises clients or interacts with the IRS.
Jerry Shrock, aged 49 from Meadowview, Virginia, was sentenced to five years' probation and must pay $1.5 million covering taxes, interest, and penalties.
Court documents reveal that between 2005 and 2015, Wellington and Underwood ran National Business Services, LLC. The company specialized in forming Limited Liability Companies (LLCs) for clients aiming to evade federal taxes. They set up at least 192 LLCs across New Mexico and opened at least 114 bank accounts for these clients.
Underwood acted as the sole signer on 99 accounts allowing anonymous financial transactions for clients. Between January 1, 2011, and July 31, 2018, more than $40 million was deposited into accounts controlled by Underwood nominally on behalf of clients.
Shrock had three LLCs created by National Business Services during an IRS audit period. From 2011 to 2015, he deposited nearly $4.9 million into one LLC's bank account while concealing over $4.3 million in income without filing tax returns.
The announcement came from U.S. Attorney Alexander M.M. Uballez alongside Special Agent Carissa Messick of the IRS Criminal Investigation’s Phoenix Field Office.
This case was investigated by IRS Criminal Investigation with Assistant United States Attorney Jeremy Peña prosecuting it.