David Stone, owner of Engineered Metals Company, a Texas roofing, siding and sheet metal business, was sentenced today to 30 months in prison for obstructing IRS collection efforts on unpaid employment taxes.
Stone willfully failed to pay over employment taxes he had collected on behalf of his employees. When the IRS began collection proceedings, Stone stopped filing individual income tax returns and used business accounts to pay personal expenses, including child support and alimony, to conceal his income from the IRS. His obstructive conduct spanned from 2013 through 2024 and caused approximately $1.4 million in tax loss to the United States.
Stone pleaded guilty to one count of corruptly endeavoring to obstruct the due administration of the internal revenue laws. The court also ordered him to serve one year of supervised release and pay approximately $1,384,766 in restitution to the United States.
The case was investigated by IRS Criminal Investigation and prosecuted by Trial Attorney Caroline Pearson of the Justice Department's Fraud Division Tax Section. Assistant Attorney General Colin McDonald of the National Fraud Enforcement Division and U.S. Attorney Justin Simmons of the Western District of Texas announced the sentence.