North Tonawanda business owner sentenced for tax evasion, IRS loses $500,000

Posted at 3:17 PM, Feb 08, 2017
and last updated 2017-02-08 15:18:53-05

A North Tonawanda business owner was sentenced Wednesday to 30 months in prison for tax fraud.

Acting U.S. Attorney James Kennedy, Jr. says David Schmitt, 65, was convicted of tax evasion and ordered to pay restitution totaling $748,459.75.

Assistant U.S. Attorney Michael DiGiacomo says Schmitt owned and operated a delivery business known as Three Kids Trucking Inc. and 1553 Harlem Road Inc.

According to DiGiacomo, between February 2010 and June 2013, Schmitt tried to evade and defeat the payment of federal employment taxes owed by 1553 Harlem Road Inc. Officials say he filed false forms with the IRS, had individuals open bank accounts to do business for the corporation and created a fraudulent trust for one of the corporations.

Officials say the total loss to the IRS was more than $500,000.