Prolific Tax Cheat Pleads Guilty in Federal Court docket | USAO-OR

PORTLAND, Ore.—An Oregon male pleaded responsible today to 6 felony expenses after failing to shell out a lot more than $1.7 million in particular profits taxes in a intricate tax evasion plan courting back again to 2001.

Robert Andrew Lund, of Lebanon, Oregon, pleaded guilty to tax evasion, failure to file personalized revenue tax returns, and stealing food items stamp and Medicaid benefits.

In accordance to court documents, in the mid 1980s, right after performing for various several years as a laptop or computer engineer and programmer for the Hewlett Packard company, Lund moved to Oregon and commenced a personal computer consulting organization identified as Lund General performance Alternatives (LPS). LPS’s purchasers involved massive firms, college districts, and health care businesses found all over the U.S. In 1993, Lund compensated $30,000 to an offshore trust promoter to create layers of trusts to disguise his LPS earnings from the IRS. From 1994 to 1996, despite LPS staying remarkably rewarding, Lund documented almost no income on his private profits tax returns. Shortly just after, the IRS audited Lund and established he owed a lot more than $2.7 million in taxes as well as penalties.

Lund utilised his untaxed revenue to buy 90 acres of land outside Eugene, Oregon on which he designed a 7,000 square foot property that was afterwards appraised at $950,000. Lund, a small aircraft pilot, also crafted a personal landing strip on the home. Lund also procured the former town corridor and article business office making in Albany, Oregon, a trailer park with numerous rental models, and two rental properties. Lund ran LPS and various smaller companies, like a well being meals keep, a bookstore, and a scuba diving devices and lessons business, from the making in Albany.

Lund challenged his tax assessments in U.S. Tax Court docket and the Ninth Circuit Court of Appeals. Each affirmed he owed the IRS unpaid taxes. In response, Lund stopped filing tax returns altogether and started developing a lot of restricted legal responsibility firms (LLC) and trusts to conceal his cash flow and assets. During this time, Lund sought the help of a known tax protestor legal professional from Georgia named Kyle Months. Months later on surrendered his legislation license and was convicted for submitting wrong tax returns.

Above the next ten years, the IRS sent Lund dozens of letters, bills, and summonses for financial documents. Lund replied with his possess letters professing he was not a U.S. citizen and as a result not subject matter to taxation or the IRS’s authority. During this very same time, Lund continued to go to amazing lengths to cover his belongings and earnings from the IRS though also stealing from govt support courses and having edge of private contacts. He continuously transferred title to his houses to numerous straw entities and people hid rental revenue by signing leases with the names of at the very least 16 various LLCs, partnerships, and trusts used for and received foodstuff stamps and Medicaid rewards and certain an employee to open a financial institution account on behalf of one particular of Lund’s trusts. On his food items stamp and Medicaid purposes, Lund boldly claimed to be a part-time handyman earning just $810 a thirty day period. In overall, Lund stole roughly $70,000 in general public added benefits, most of which ended up paid by the federal governing administration.

On June 12, 2019, a grand jury returned an indictment charging Lund with tax evasion, failure to file particular cash flow tax returns, obstructing or impeding the IRS, and theft of govt money. Lund is also billed in a different federal scenario with creating a wrong statement in link with a private individual bankruptcy case. All of Lund’s remaining expenses will be dismissed as part of his plea agreement.

Lund faces a maximum sentence of 27 many years in jail, $950,000 in fines, and a few years’ supervised release. He will be sentenced on October 14, 2021 right before U.S. District Court Decide Michael H. Simon.

As part of his plea agreement, Lund will shell out additional than $1.7 million in restitution to the IRS and $70,000 to the Oregon Wellbeing Authority.

Performing U.S. Lawyer Scott Erik Asphaug of the District of Oregon created the announcement.

This circumstance was investigated by IRS Felony Investigation and prosecuted by Seth D. Uram and Meredith D.M. Bateman, Assistant U.S. Lawyers for the District of Oregon.

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