Man charged with $400,000 tax evasion - Cleveland 19 News Cleveland, OH

Man charged with $400,000 tax evasion


The U.S. Attorney's office has reported that the IRS has filed criminal charges against the owner of Universal Service and Repair, Ltd, John W. Hufgard with three counts of tax evasion.  Hufgard, 59, resides in Bath, Ohio and according to court records, avoided paying roughly $400,000 from 2007 to 2009.  Hufgard sold manufacturing racks to metal scrap dealers, and did not report the proceeds on his federal income tax returns.  

According to the information, Hufgard was able to carry out his plan by selling racks for cash then depositing the income into his personal account and falsely recording the business income as short term loans from himself.  It is reported that he also sold large amounts of scrapped metal racks, long distances, to scrap dealers who were willing to pay him in cash.

If convicted, Hufgard's sentence will be determined by the court after review of all relevant information.  The prosecutor on this case is Special Assistant United States Attorney Perry D. Mastrocola, following an investigation by the IRS Criminal Investigation Division.

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