BUFFALO, N.Y. – David B. Schmitt, 65, of North Tonawanda, is trading in truck routes for prison bars. The owner of now-disgraced delivery businesses Three Kids Trucking Inc. and 1553 Harlem Road Inc. received a 30-month federal sentence today after being convicted of deliberately dodging his tax obligations. U.S. District Judge Elizabeth A. Wolford didn’t show leniency, also slapping Schmitt with a hefty $748,459.75 restitution order.
Acting U.S. Attorney James P. Kennedy, Jr.’s office brought the hammer down on Schmitt following an investigation that exposed a calculated scheme to cheat the system. From February 2010 to June 2013, Schmitt allegedly ran a shadow operation within his businesses, diverting funds and falsifying records to avoid paying federal employment taxes owed by 1553 Harlem Road Inc. It wasn’t a simple oversight; this was a systematic effort to line his pockets at the expense of the U.S. Treasury.
Assistant U.S. Attorney Michael DiGiacomo detailed the elaborate deception in court. Schmitt didn’t just fail to pay; he actively hid the money. The scheme involved filing bogus forms with the IRS, establishing shell bank accounts through “nominees” to funnel corporate funds, and even concocting a fraudulent trust – all designed to keep the IRS from collecting what was rightfully owed. The IRS estimates the total loss from Schmitt’s actions exceeded $500,000.
“This wasn’t a mistake, it was a choice,” a source close to the investigation told Grimy Times. “Schmitt knowingly broke the law, and he tried to cover his tracks. He thought he could outsmart the IRS, but he underestimated their resources and dedication to pursuing these cases.” The investigation, led by the IRS Criminal Investigation Division under Acting Special Agent-in-Charge Kathy A. Enstrom, meticulously untangled Schmitt’s web of deceit.
The 30-month sentence sends a clear message: tax evasion isn’t a victimless crime, and those who attempt it will face serious consequences. The IRS is cracking down on schemes like Schmitt’s, and the days of thinking you can get away with cheating on your taxes are numbered. The restitution order ensures that the government recovers at least a portion of the stolen funds.
Schmitt’s legal team did not respond to requests for comment. He will begin serving his sentence immediately. Grimy Times will continue to follow this case and report on any further developments. Contact Barbara Burns at (716) 843-5817 or via fax at (716) 551-3051 for additional information.
Related Federal Cases
- Stamford Trash King Gets 18 Months for Tax Dodge · New York
- Mount Vernon Tax Man Gets 51 Months for IRS Scheme · New York
- Zuckerman Gets 70 Months for $45M Tax Scam · Delaware
- Aliyu Gets 33 Months for Tax Refund Fraud · Pennsylvania
- Ex-IRS Officer Brewer Gets 6 Months for Tax Fraud · New Jersey
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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