Bath Twp man sent to prison for income tax evasion

8:23 PM, Feb 21, 2013   |    comments
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CLEVELAND -- John W. Hufgard, 59, of Bath Township, was sentenced to 18 months in prison and ordered to pay restitution of $397,659, according to U.S. Attorney Steven M. Dettelbach.

Hufgard was also sentenced to two years of supervised release by U.S. District Judge Patricia A. Gaughan.

Hufgard pleaded guilty to three counts of income tax evasion (for the 2007, 2008 and 2009 income tax years) on Nov. 26.

Hufgard was the sole owner of Universal Service and Repair, Limited. Hufgard sold manufacturing racks to metal scrap dealers, and failed to report the proceeds on his federal income tax returns.

U.S. Attorneys say Hufgard concealed his scheme by selling racks for cash, by depositing business income into his personal account, business income diverted into his personal account, and falsely recording business income as short term loans from himself, according to court documents.

Through this scheme, Hufgard evaded approximately $397,659 in federal taxes.

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