ALBUQUERQUE, N.M. – Stacy M. Underwood, a 51-year-old woman from Albuquerque, pleaded guilty on October 21 to conspiracy to conspiracy to defraud the United States.
Underwood will remain on conditions of release pending sentencing, which has not been scheduled.
According to the plea agreement and other court records, Underwood and her business partner, David Wellington, operated National Business Services, which promoted, sold and created Limited Liability Companies (LLCs) under New Mexico State Law.
For many clients, National Business Services would open bank accounts under the names and IRS employer identification numbers (EIDs) of the LLCs, and the clients – whose names were not associated with the bank accounts – would have access to the funds in those accounts.
Clients received debit cards, online bank access information and pre-signed checks with Underwood’s signature, which clients could use to access the money despite the bank never associating the client with the account.
Underwood and Wellington organized at least 192 LLCs in New Mexico between 2005 and 2015 on behalf of clients seeking to shield income from the IRS. Underwood opened at least 114 bank accounts for these clients. Underwood was the sole signer for 99 such accounts.
Between January 1, 2011, and July 31, 2018, over $40 million was deposited into clients’ accounts that were in the nominal control of Underwood.
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Key Facts
- State: New Mexico
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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