Kevin Shaffer, LuAnn Shaffer, Conspiracy, Bank Fraud, Tax Evasion, Virginia 2023

A married couple from Fairfax Station, Va., has been indicted for conspiracy, bank fraud, and tax evasion, according to the U.S. Attorney's Office for the Eastern District of Virginia.

Kevin and LuAnn Shaffer, co-owners of a Manassas, Va.-based consulting business named Matrix-DSS, were charged with 12 counts including conspiracy, bank fraud, and tax evasion.

The indictment alleges that the couple conspired to defraud four separate banks, including attempting to secure approximately $5.6 million from one bank for a home loan. The Shaffers are accused of submitting false information to their lenders that overstated their assets and made other material misrepresentations, including inflated 401(k) account balances, false W-2 forms, false pay stubs, and false wage information.

The couple is also accused of failing to make an income tax return for the calendar years 2005 to 2007 and for understating their taxable income in 2004 by more than $380,000. In addition, Kevin Shaffer is accused of failing to account for and pay over to the IRS more than $200,000 in federal taxes that he withheld from the paychecks of Matrix DSS employees from July 1, 2006, to Jan. 31, 2008.

The 12-count indictment was unsealed today and announced by U.S. Attorney Neil H. MacBride of the Eastern District of Virginia. The case is being investigated by the IRS Criminal Investigation Office and U.S. Secret Service. Trial Attorney Tracy L. Gostyla from the Tax Division and Assistant U.S. Attorney Charles F. Connolly from the Eastern District of Virginia are prosecuting the case on behalf of the United States.

Kevin and LuAnn Shaffer are from Fairfax Station, Va. The indictment was returned on an unspecified date in 2023. The outcome of the case is currently pending.

The indictment alleges that the couple's conspiracy to defraud banks resulted in approximately $5.6 million in attempted loans. The couple's tax evasion scheme understated their taxable income by more than $380,000 and resulted in the underpayment of more than $200,000 in federal taxes.

The Shaffers' consulting business, Matrix-DSS, is based in Manassas, Va. The investigation is ongoing, and no further information is available at this time.

Source: https://www.justice.gov/archives/opa/pr/northern-virginia-couple-indicted-conspiracy-bank-fraud-and-tax-evasion