Sentenced to prison, restitution, and fines, a Utah man admitted to filing fraudulent tax returns to cover millions of dollars in receipts from his illegal firearms business.
As crimes go, Adam Michael Webber’s actions were novel. In 2007, after federal law enforcement seized illegal firearms possessed by Mr. Webber, he and his brother agreed not to apply for a federal firearms license that would allow them to buy and sell weapons. True to his word, Mr. Webber did not apply for a federal permit. Instead he built a multi-million dollar business illegally selling firearms.
Mr. Webber had legally been operating a business selling weaponry parts from his home. In 2008, after his agreement with federal agents, Mr. Webber added fully assembled firearms to his product line. The combined income from his legal and illegal firearms venture earned him in excess of $10 million.
Mr. Webber found himself with unwelcome attention from the Bureau of Alcohol, Tobacco, and Firearms (ATF) when he sold illegal weapons to undercover ATF agents on two occasions.
During this time, Mr. Webber also reported only about $183,397 in receipts on his business and personal tax returns, against the millions he had earned during the scope of the investigation against him. In 2010, Mr. Webber also paid $670,000 in cash for a home he attempted to shelter through a limited liability company set up in the name of his wife.
Found guilty by a jury
In early December, 2017, Mr. Webber was sentenced for filing fraudulent and false income tax returns after being found guilty by a jury. He later pled guilty to selling firearms without a license. Counts of gun trafficking and smuggling were dismissed due to errors made by the prosecution. In all, Mr. Webber will serve four years in prison, with another three years of supervised release. He paid more than $1.8 million in restitution to the IRS and a fine of $100,000 was levied. Mr. Webber agreed to forfeit more than 300 weapons removed by federal agents when they executed a search warrant on his property.
According to media reports, the judge who sentenced Mr. Webber commented that the firearms charge faced by Mr. Weber “isn’t the worst in the world,” but the breadth of the tax fraud was “quite remarkable.”
Although he apologized, and he had many supporters who requested probation on his behalf, Mr. Webber will be in the court system for the next seven years, having lost his livelihood, his liberty, and his reputation.
Filing fraudulent tax returns is a serious criminal tax matter even in the absence of other criminal activity. If you know there are problems with personal and business tax documents you have already filed, speak with an experienced criminal tax defense attorney in Chicago, or in your geographic region. With knowledgeable legal help, you may be able to find solutions before becoming the subject of an IRS audit.
If you become aware the IRS has already initiated a criminal tax investigation, seek reputable legal advice as soon as possible.
Experienced legal representation with criminal tax charges
With offices in Cleveland and Chicago, the law firm of Robert J. Fedor Esq., LLC provides local and international defense for individuals and entities facing an IRS criminal tax investigation. Contact our legal team today.
