DOJ sues Trump ally Roger Stone his wife over alleged unpaid taxes

Roger Stone, a longtime political ally of President Donald Trump, departs following a hearing on the status of the criminal case brought against him by Special Advocate Robert Mueller at the United States District Court of Washington, March 14, 2019.

Joshua Roberts | Reuters

On Friday, the Justice Department sued Roger Stone, the former staunch adviser to former President Donald Trump, alleging that he and his wife owed nearly $ 2 million in unpaid federal taxes and other charges.

The lawsuit accuses Stone and Nydia Stone of using an “alter ego” company to “protect their personal income from forced collection and to fund a lavish lifestyle.”

The civil lawsuit also alleges that the Stones “intended to defraud the United States” by fraudulent transfer of money used to purchase their home.

Stone, 68, a longtime Republican political agent, was pardoned by Trump in December after being convicted of lying to Congress.

The DOJ lawsuit, filed in federal court in South Florida, alleges Stone and his wife underpaid their federal income taxes for five consecutive years, from 2007 to 2011. The Stones owe 1,590,361.89 $, including interest and late fees, depending on the complaint.

The lawsuit also alleges that Stone did not pay his full tax bill in 2018, when he filed a separate claim from his wife. He owes $ 407,036.84 in income taxes, interest and penalties for that year, according to the complaint.

“Despite the notice and demand for payment, Roger and Nydia Stone failed and refused to pay the full amount of debts they owe,” the DOJ alleges.

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Stone did not immediately respond to an email requesting comment on the lawsuit.

The lawsuit alleges that the Stones “evaded and frustrated the IRS’s collection efforts” by using a Delaware limited liability company called Drake Ventures. The business is “dominated and controlled” by the family “to such an extent that it does not exist as an independent entity,” says the DOJ.

Drake Ventures does not have a website or phone number, all of its members are part of Stone’s family, and its address is the same as the Stones’ home in Fort Lauderdale, Fla., The complaint states.

“The Stones used Drake Ventures’ bank accounts to pay a substantial amount of their personal expenses, including groceries, dentist bills, spas, salons, clothing and restaurant expenses,” according to the complaint. .

They also paid over $ 500,000 of their personal tax obligations through Drake Ventures bank accounts in 2018 and 2019, and they used the company to pay Stone’s associates and relatives without providing the correct documents, the DOJ alleges. .

“The Stones have used Drake Ventures for improper purposes and to harm the United States,” according to the complaint. “They used Drake Ventures to receive payments that are payable to Roger Stone personally, pay for their personal expenses, protect their assets, and avoid reporting taxable income to the IRS.”

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