Fort Myers Roofing Contractors Sentenced to Prison for Evading Over $1.1 Million in Taxes

Two Florida businessmen, David Aaron and Russell Ultes, were sentenced to 18 months and nine months in prison, respectively, for a scheme to evade over $1.1 million in income taxes.

Aaron and Ultes, co-owners of Marlin Construction Group LLC, a Fort Myers-based residential and commercial roofing company, diverted millions of dollars of customer checks made payable to Marlin by cashing them at check-cashing businesses in nearby counties. They used the cash to pay personal expenses, such as the purchase of jet-skis, boats, and vehicles.

To carry out the scheme, Aaron and Ultes caused Marlin’s books and records to falsely underreport the business’s gross receipts and income for those years. They provided false information to Marlin’s tax return preparers, resulting in the preparation of false 2018 and 2019 corporate income tax returns (Forms 1120S) that did not report all gross receipts and income. Because the income from the false corporate returns flowed through to Aaron and Ultes’s personal returns, their 2018 and 2019 personal income tax returns (Forms 1040) were similarly false. In total, Aaron and Ultes caused a tax loss to the IRS of over $1.13 million.

U.S. District Judge Sheri P. Chappell for the Middle District of Florida also ordered that, in addition to their prison sentences, Aaron serve three years of supervised release and pay a $50,000 fine, while Ultes will serve nine months of home confinement, followed by three years of supervised release and pay a $75,000 fine.

Acting Deputy Assistant Attorney General Stuart M. Goldberg and U.S. Attorney Roger B. Handberg made the announcement. The IRS-Criminal Investigation investigated the case, and Senior Litigation Counsel Stanley J. Okula Jr. and Trial Attorney Richard J. Hagerman of the Tax Division prosecuted the case with support from the U.S. Attorney’s Office for the Middle District of Florida.

Mandatory Facts:

Defendant/Respondent: David Aaron and Russell Ultes

Exact Criminal Charges: Tax Evasion

City and State: Fort Myers, Florida

Exact Date: Not specified

Sentence or Outcome: 18 months and 9 months in prison, $50,000 and $75,000 fines

Dollar Amounts: Over $1.1 million in income taxes evaded

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