A federal grand jury in Miami on Friday indicted a local businessman, Joseph Stewart, on charges of tax evasion and filing false tax returns. According to the indictment, Stewart reportedly failed to pay taxes on more than $6.8 million in dividends from his stake in a company that sold internet access to US military personnel and contractors overseas.
According to the accusation, Stewart, a co-owner of the business, stopped filing regular tax returns between 2013 and 2021, once the company became profitable.
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Following IRS letters in 2019, Stewart allegedly engaged tax consultants and fraudulently claimed that more than $3.8 million in profits were non-taxable loans. He also allegedly falsely claimed not to know the other shareholders. This prompted tax professionals to create and file returns that understated his income and taxes.
In a second case, Stewart is accused of filing a fake affidavit with the US Citizenship and Immigration Service in April 2016, claiming to have submitted tax returns for the preceding three years. He allegedly attached fake, unfiled copies of returns, claiming they were true and correct.
If convicted, Stewart faces lengthy prison time. Each conviction of tax evasion carries a maximum five-year penalty, while each count of filing a false tax return carries a maximum of three years. He also faces supervised release, reparations, and monetary fines. A federal judge will set the final punishment, taking into account the United States Sentencing Guidelines.
The matter is being investigated by IRS Criminal Investigation and the Special Inspector General for Afghanistan Reconstruction, with Trial Attorneys Ezra Spiro and Likhitha Butchireddygari of the Tax Division handling the prosecution.
