Recycling company owner pleads guilty to tax fraud charges

As part of plea deal recycler agrees to pay restitution of $116,000.

February 17, 2017
Recycling Today Staff
Legislation & Regulations

Matthew Moretz, the owner of the North Carolina-based metals recycling company MJM Recycling, has pled guilty to one charge of filing a false tax return.

The U.S. Attorney’s Office, Western District of North Carolina, has announced that Matthew Moretz, the owner of MJM Recycling, a North Carolina-based metals recycling company, has pled guilty to one charge of filing a false tax return.

In filed documents and court proceedings, the U.S. Attorney’s Office notes that from April 2010 to March 2011 Moretz collected unemployment income from the North Carolina Division of Employment. However, beginning in or about March 2010 and continuing through 2013, Moretz was self-employed as the owner of MJM Recycling.

From tax year 2010 through tax year 2013, Moretz concealed significant personal earnings from his business from the Internal Revenue Service. During the relevant time, Moretz failed to disclose or provide records from all the bank accounts to his bookkeeper and tax return preparers.

According to documents and court proceedings, for years 2010 through 2013, Moretz earned additional personal income totaling close to $530,000 that Moretz failed to report on his U.S. Individual Income Tax Returns Form 1040 filed with the IRS. Specifically, Moretz failed to report cash deposits totaling $99,344.39, $194,675.59, $124,432.58, and $111,169.88, respectively, for 2010 through 2013. Due to his failure to report the taxable income, Moretz had additional tax due and owing of about $116,409 from 2010 to 2013.

Moretz was released on bond after the plea hearing. The false tax return charge carries a maximum prison term of three years and a $250,000 fine. As part of his plea agreement, Moretz has agreed to pay restitution of $116,409.38 to the IRS.