The owner of a Texas construction company was sentenced today to 30 months in prison for obstructing the IRS’s efforts to collect unpaid employment taxes on behalf of the business he owned and operated.
According to court documents and statements made in court, David Stone willfully failed to pay over employment taxes he had collected on behalf of the employees of Engineered Metals Company, a roofing, siding and sheet metal business that he owned and operated. As a result of his willful failure to pay over these employment taxes, the IRS began collection proceedings against him. Knowing the IRS was attempting to collect this tax delinquency, Stone stopped filing individual income tax returns and used business accounts to pay personal expenses, such as child support and alimony, to keep funds out of his own hands and conceal his income from the IRS. Stone’s obstructive actions persisted from 2013 through 2024 and caused a total tax loss to the United States of approximately $1.4 million.
Stone previously pleaded guiltyLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. to one count of corruptly endeavoring to obstruct the due administration of the internal revenue laws.
In addition to the term of imprisonment, Stone was ordered to serve one year of supervised release and to pay approximately $1,384,766 in restitution to the United States.
Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division and U.S. Attorney Justin Simmons of the Western District of Texas made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Caroline Pearson of the Fraud Division’s Tax Section prosecuted the case.
On April 7, the Department of Justice announced the creation of the Fraud Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.