Matthew Moretz, 31, of Taylorsville, N.C., is facing federal prison after pleading guilty to filing a false tax return, the U.S. Attorney’s Office announced today. Moretz admitted to concealing more than half a million dollars in income from the IRS while collecting unemployment benefits — a brazen financial double-dip that spanned four years.
The plea, entered before U.S. Magistrate Judge David C. Keesler in Charlotte, stems from Moretz’s operation of MJM Recycling, a scrap metal business he ran as a self-employed contractor from 2010 through 2013. During that same period, from April 2010 to March 2011, Moretz collected unemployment income from the North Carolina Division of Employment Security — all while failing to report substantial earnings to tax authorities.
Court documents reveal that Moretz deliberately hid personal income totaling $529,622.44 from 2010 to 2013. He failed to report cash deposits of $99,344.39 in 2010, $194,675.59 in 2011, $124,432.58 in 2012, and $111,169.88 in 2013. These funds flowed through undisclosed bank accounts, which he never provided to his bookkeeper or tax preparers.
As a direct result of the concealed income, Moretz owes the IRS $116,409.38 in unpaid taxes. He has agreed to pay full restitution under the terms of his plea agreement. The charge of filing a false tax return carries a maximum penalty of three years in prison and a $250,000 fine.
Moretz was released on bond following the hearing. The investigation was spearheaded by the Internal Revenue Service, Criminal Investigation Division (IRS-CI), under the supervision of Special Agent in Charge Thomas J. Holloman III. The case is being prosecuted by Assistant U.S. Attorney Jenny G. Sugar in Charlotte.
“This was not an oversight — it was deliberate deception,” said U.S. Attorney Jill Westmoreland Rose. “Tax fraud drains resources from communities and undermines the integrity of our financial system. We’re holding Moretz accountable for his actions.” Sentencing is scheduled for a later date.
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Key Facts
- State: North Carolina
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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