David B. Schmitt, 64, of North Tonawanda, NY, stood before U.S. District Judge Elizabeth A. Wolford and admitted to orchestrating a multi-year tax fraud scheme that bled more than $500,000 from the federal government. Schmitt, the owner of delivery companies Three Kids Trucking Inc. and 1553 Harlem Road Inc., pleaded guilty to willfully evading federal employment tax payments between February 2010 and June 2013.
According to Assistant U.S. Attorney Michael DiGiacomo, Schmitt didn’t just underreport—he built a paper fortress of deceit. He filed false IRS forms, funneled business through nominee-controlled bank accounts, and even set up a fraudulent trust to mask the operations of 1553 Harlem Road Inc. Each move was calculated, each document a lie designed to shield his businesses from tax liability.
The fraud wasn’t sloppy—it was strategic. By using third parties to open financial accounts and disguising corporate cash flow, Schmitt attempted to vanish his tax obligations into a maze of shell entities. But IRS Criminal Investigation Division agents, under Special Agent in Charge Shantelle P. Kitchen, traced the money trail back to him, dismantling his facade with forensic precision.
The charge of tax evasion carries a maximum penalty of five years in federal prison and a $250,000 fine. While Schmitt has admitted guilt, the full weight of his punishment remains pending. Federal prosecutors emphasized that such schemes undermine the entire tax system, shifting burdens onto honest taxpayers while enriching those who game the rules.
The investigation, led by the Internal Revenue Service, Criminal Investigation Division, exposed not just a failure to pay taxes—but an active, sustained campaign to defraud the government. Court records show Schmitt didn’t merely neglect his duties; he weaponized business structures to dodge obligations he knew were legally binding.
Sentencing is set for February 8, 2017, at 10:30 a.m. before Judge Wolford. Acting U.S. Attorney James P. Kennedy, Jr. reaffirmed the government’s commitment to holding white-collar offenders accountable. For Schmitt, the courtroom will deliver what his ledgers once tried to avoid: consequences.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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