ALBUQUERQUE, N.M. – A federal grand jury indicted two men on tax fraud and operating an unlicensed money transmitting business charges. David Wellington, 62, of Albuquerque, faces an additional count of operation of an unlicensed money transmitting business, while Jerry Shrock, 46, of Meadowview, Virginia, was charged with conspiracy to defraud the United States.
Wellington and Jerry Shrock are scheduled to appear in court on July 7 and July 15 respectively. An indictment is only an allegation, and the defendants are presumed innocent unless proven guilty.
According to the indictment, since at least 2005, Wellington and his business partner operated National Business Services, which promoted, sold and created Limited Liability Companies (LLCs) under New Mexico State Law. For many clients, National Business Services allegedly 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.
Shrock was a client of Wellington and National Business Services since at least 2006. National Business Services allegedly created multiple LLCs in New Mexico for Shrock, including White Top Enterprise LLC. The company opened a bank account in the business name and EID of White Top Enterprise and provided Shrock with access to the funds in the account.
Between May 9, 2011, and June 30, 2015, Shrock allegedly deposited and withdrew approximately $4,875,940, of which at least $4,347,101 was income for which Shrock never filed a personal or business tax return with the IRS. At the time of the deposits and withdrawals, Shrock was subject to an outstanding IRS lien for unpaid taxes, penalties and interest in the amount of approximately $1 million.
The indictment alleges that using the White Top Enterprise account allowed Shrock to generate and access income while evading both the outstanding assessment and personal and business income taxes. If convicted, Shrock faces up to five years in prison, while Wellington faces up to 10 years.
The IRS Criminal Investigation investigated this case, and Assistant U.S. Attorney Jeremy Peña is prosecuting the case.
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Key Facts
- State: New Mexico
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: DOJ Press Release â†â€â€
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