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Bluffton Man Sentenced for Tax Evasion
CHARLESTON, SOUTH CAROLINA – In a shocking case of tax evasion, 78-year-old Michael Sturms of Bluffton, South Carolina, has been sentenced to five years of probation and ordered to pay $3,097,582 in restitution to the Internal Revenue Service (IRS), according to a recent court ruling.
The evidence presented in court revealed that Sturms failed to timely file individual income tax returns with the IRS for tax years 2007 through 2012. These delinquent returns were eventually filed in 2014 as part of divorce proceedings from his then-wife. Sturms signed each of these late-filed returns, admitting to a significant tax deficiency.
The IRS took swift action against Sturms, filing federal tax liens in South Carolina and Florida against him and his business entities for taxes owed. On March 9, 2015, the IRS sent Sturms a Final Notice of Intent to Levy in the amount of $2,368,409.94, which included the total taxes, penalties, and interest then due and owing.
Despite knowing that he had taxes due and owing, Sturms attempted to evade and defeat the payment of income tax by engaging in a series of financial transactions. These efforts to evade taxes included creating a new business checking account in the name of Worldwide Financials, LLC, to deposit $1,181,321.64 of settlement money. He also attempted to withdraw $1 million in cash from this account and transferred $550,000 of these settlement proceeds to his new wife, which was then used to purchase a residence lien-free in her name.
United States District Judge Richard M. Gergel handed down the sentence, ordering Sturms to pay $3,097,582 in restitution, which represents the accrued unpaid taxes, interest, and fees owed to the United States.
The case was investigated by the Internal Revenue Service, Criminal Investigation Division. Assistant U.S. Attorney Allessandra Stewart is prosecuting the case.
Key Facts
- State: South Carolina
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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