Mike Lundy Charged in $250K Tax Fraud Scheme

A Rapid City, South Dakota, man is facing federal charges after allegedly pocketing investor cash and hiding the income from the IRS. Mike Lundy, a/k/a Barkley J.W. Lundy, was charged on February 7, 2017, with Wire Fraud and Making and Subscribing a False Tax Return, the Department of Justice announced.

Lundy appeared before U.S. Magistrate Judge Daneta Wollmann on February 14, 2017, pleading not guilty to the charges. If convicted, he faces a maximum penalty of 20 years in federal prison and/or a $250,000 fine. Additional penalties include up to 3 years of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and possible restitution.

According to court documents, Lundy solicited money from individuals under the guise of investment opportunities, then diverted a portion of those funds for personal expenses. He allegedly failed to report the illicit income on his tax returns, triggering the federal charges.

The investigation was conducted by Internal Revenue Service Criminal Investigation, highlighting the agency’s continued crackdown on financial deception. The case is being prosecuted by Assistant U.S. Attorney Ben Patterson in federal district court.

Despite the severity of the charges, Lundy was released pending trial. Federal authorities stress that the charges are merely accusations, and Lundy is presumed innocent until proven guilty in a court of law.

The case shines a light on the underground economy of sham investments and tax evasion in the region. With a potential 20-year sentence on the line, Lundy’s fate now rests in the hands of the federal judiciary.