ABQ Times

An Albuquerque man has been sentenced to 40 months in prison for orchestrating a tax evasion scheme and ordered to pay over $5.5 million in restitution, as announced by the U.S. Attorney's Office and the IRS.

According to court records, David Wellington and Stacy Underwood founded National Business Services, LLC in New Mexico in January 2005. The company specialized in creating LLCs for clients seeking to evade taxes. Wellington focused on marketing and client development, while Underwood managed corporate filings and bank accounts.

The company obtained Employer Identification Numbers (EINs) for clients and opened bank accounts under Underwood's sole signature authority. Between 2005 and 2015, they created 192 LLCs and opened 114 bank accounts, with approximately $41.7 million deposited into accounts under Underwood’s control, representing concealed income.

One notable client, Jerry Shrock, had three LLCs formed by National Business Services while undergoing an IRS audit. Despite the audit, Shrock transferred his home into one of the LLCs to shield it from the government. Between 2011 and 2015, he deposited nearly $4.9 million into a bank account opened for one of his LLCs, concealing over $4.3 million in income without ever filing tax returns.

Stacy Underwood pleaded guilty to conspiracy to defraud the United States and remains on conditions of release pending sentencing, which has not been scheduled yet. Under the terms of her agreement, Underwood faces up to five years in prison followed by up to three years of supervised release.

Jerry Shrock also pleaded guilty to conspiracy to defraud the United States and was sentenced to five years’ probation along with an order to pay $1,542,769.70 in taxes, interest, and penalties.

Upon his release from prison, Wellington will be subject to three years of supervised release and is prohibited from ever running any business advising clients or dealing with the IRS.

U.S. Attorney Alexander M.M. Uballez and Carissa Messick, Acting Special Agent in Charge of IRS Criminal Investigation made this announcement today.

IRS Criminal Investigation investigated this case with Assistant United States Attorney Jeremy Peña prosecuting it.