David Wellington, Conspiracy to Defraud the United States, New Mexico 2023

ALBUQUERQUE, N.M. – A brazen scheme to defraud the United States has been brought to light with the guilty plea of David Wellington, a 64-year-old Albuquerque resident. Wellington’s actions, which spanned nearly a decade, have left a trail of financial devastation in their wake.

According to court documents, Wellington and his business partner, Stacy Underwood, 52, of Albuquerque, established National Business Services, LLC in 2005. This company was involved in the promotion, sale, and creation of Limited Liability Companies under New Mexico state law. Through the LLC, Wellington and Underwood created 192 LLCs in New Mexico, obtained Employer Identification Numbers from the IRS, and opened 114 bank accounts, allowing their clients to remain anonymous.

The scheme took a sinister turn in 2006 when Wellington and Underwood created three LLCs for Jerry Shrock, 48, of Meadowview, Virginia. Underwood was listed as the ‘Organizer’ and National Business Services, LLC as the initial registered agent for all three. In 2011, Underwood opened a bank account for one of the LLCs and provided Shrock with online access to the bank account and a book of pre-signed checks with her signature. Between 2011 and 2015, $4,875,940 was deposited into and withdrawn from the bank account.

At the time of the deposits and withdrawals, Shrock had an outstanding IRS assessment for unpaid taxes, penalties, and interest in the amount of about $1 million. Shrock never filed personal or business tax returns with the IRS reporting the income in the LLCs bank account, allowing him to generate and deposit income while evading the outstanding assessment and personal and business taxes on the income.

Wellington faces up to 5 years in prison followed by up to 3 years of supervised release under the terms of his agreement. Underwood, who pled guilty to conspiracy on Oct. 21, 2022, faces the same sentence. Shrock, who also pled guilty to conspiracy on Nov. 28, 2022, awaits sentencing.

The IRS Criminal Investigation Phoenix Field Office investigated this case, with Assistant United States Attorney Jeremy Peña prosecuting. The case serves as a stark reminder of the devastating consequences of white-collar crime and the importance of holding perpetrators accountable for their actions.

As the Grimy Times continues to expose the dark underbelly of crime, it is clear that no one is above the law. Wellington’s guilty plea marks a significant victory for justice and a step towards reclaiming the financial loss suffered by the United States.

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