Alexander M.M. Uballez U.S. Attorney | U.S. Attorney for the District of New Mexico
The U.S. Attorney's Office has concluded a significant tax evasion case with the sentencing of the third and final defendant involved in a scheme that resulted in millions of dollars in unpaid taxes over more than ten years.
Stacy Underwood, aged 53 from Albuquerque, was sentenced to time served and three years of supervised release. She was also ordered to pay over $5.5 million in restitution for her role in the operation.
Previously, David Wellington, aged 66 and also from Albuquerque, received a sentence of 40 months imprisonment. He is required to pay over $5.5 million in restitution and is permanently barred from managing any business advising clients or interacting 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 revealed that between 2005 and 2015, Wellington and Underwood ran National Business Services, LLC. This company specialized in forming Limited Liability Companies (LLCs) for clients aiming to evade federal taxes by creating at least 192 LLCs in New Mexico and opening at least 114 bank accounts for these clients.
Underwood acted as the sole signer on 99 accounts enabling anonymous financial transactions for clients. From January 1, 2011, through July 31, 2018, these accounts saw deposits exceeding $40 million under Underwood's nominal control.
Shrock had three LLCs formed by National Business Services during an IRS audit period. Between 2011 and 2015, he deposited nearly $4.9 million into one account opened for his LLCs while concealing over $4.3 million without filing tax returns.
The announcement came from U.S. Attorney Alexander M.M. Uballez alongside Special Agent Carissa Messick of IRS Criminal Investigation’s Phoenix Field Office.
The case was investigated by IRS Criminal Investigation with Assistant United States Attorney Jeremy Peña prosecuting.
