Tuscola Businessman Pleads Guilty to Income Tax Evasion

Springfield, Ill. – Sentencing has been scheduled on Jan. 4, 2016, for a Tuscola, Ill., businessman, Lorenzo Shane Stewart, owner of Ten Acres Excavating, who pled guilty on Friday to two counts of income tax evasion. Stewart appeared in Springfield before U.S. District Judge Sue E. Myerscough. Stewart remains on bond pending sentencing.

During court proceedings and according to court documents, Stewart, 48, admitted that he failed to pay more than $1.12 million in income tax for the 2008 and 2009 tax years. In 2006, Stewart began conducting his excavation and construction business under the name Ten Acre Excavating. Stewart put the business under the name of one of his employees.  Although Stewart operated the business and received the income generated from the business, Stewart did not claim income generated by Ten Acre Excavating on his own tax returns.

In approximately July 2008, Stewart was awarded contracts to perform excavating and construction work on several natural gas pipeline substations that were being built in the Tuscola area.  Stewart and his employees performed work on these substations and received checks related to this pipeline work totaling approximately $1.7 million in 2008 and $5.9 million in 2009. Stewart claimed his adjusted gross income for 2008 was approximately $74,199, when in fact, his adjusted gross income for 2008 was approximately $279,803. For 2009, Stewart claimed his adjusted gross income was approximately $257,361, when in fact, his adjusted gross income was approximately $3,044,980.

Each count carries a penalty of up to five years in prison, a $100,000 fine plus the costs of prosecution, and restitution.

The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller. The charges are the result of an investigation by the Internal Revenue Service, Criminal Investigation Division.