Stacy M. Underwood, Conspiracy to Defraud the United States, New Mexico 2022

ALBUQUERQUE, N.M. - In a shocking turn of events, Stacy M. Underwood, a 51-year-old resident of Albuquerque, has pleaded guilty to conspiracy to defraud the United States. The crime, which took place between 2005 and 2015, involved Underwood and her business partner, David Wellington, 62, operating National Business Services, which promoted, sold and created Limited Liability Companies (LLCs) under New Mexico State Law.

According to the plea agreement and other court records, Underwood and Wellington organized at least 192 LLCs in New Mexico on behalf of clients seeking to shield income from the IRS. Underwood opened at least 114 bank accounts for these clients, with 99 of them having her signature on the pre-signed checks. Between 2011 and 2018, over $40 million was deposited into clients’ accounts that were in the nominal control of Underwood.

The scheme, which involved creating multiple LLCs for clients and opening bank accounts in their names, allowed clients to access the funds without being associated with the account. Underwood and her business partner would provide clients with debit cards, online bank access information, and pre-signed checks, giving them control over the funds.

Underwood and her business partner, David Wellington, 62, face up to 5 years in prison. Wellington also faces an additional count of operation of an unlicensed money transmitting business, which carries a maximum sentence of 10 years in prison.

Underwood was arrested and will remain on conditions of release pending sentencing, which has not been scheduled. The case is being prosecuted by Assistant United States Attorney Jeremy Peña.

The investigation was conducted by the IRS Criminal Investigation.

Underwood and Wellington's scheme was uncovered after an indictment was filed against Wellington and National Business Services client Jerry Shrock, 47, of Meadowview, Virginia. Wellington and Shrock are charged with conspiracy to defraud the United States and face up to 5 years in prison. Wellington also faces an additional count of operation of an unlicensed money transmitting business.

Source: https://www.justice.gov/usao-nm/pr/albuquerque-woman-pleads-guilty-conspiracy-defraud-united-states