Greenville Roofing Company Owner Sentenced To Prison For Tax Evasion

John Frederick Snyder, Owner of Snyder’s Roofing, Willfully Underreported his Income by Over $6 Million for tax years 2009 to 2014

          GRAND RAPIDS, MICHIGAN — U.S. District Judge Gordon J. Quist sentenced John Frederick Snyder, 72, of Greenville, Michigan, and owner of Snyder’s Roofing, to 12 months and 1 day in prison on October 18 following his guilty plea to a felony information charging him with tax evasion for the 2011 tax year. Snyder further admitted to willfully evading the assessment of income taxes for 2009 to 2014 by underreporting his income by over $6 million. The court also ordered Snyder to pay restitution of $414,160.00, representing the amount of taxes he intentionally failed to pay, which Snyder paid in full prior to sentencing. The IRS will assess interest and penalties against Snyder in the additional amount of approximately $600,000.00.

          "Today, the court again justifiably recognized that the integrity of our country’s tax system depends upon voluntary and honest participation by everyone," said U.S. Attorney Andrew Birge. "Those who repeatedly and intentionally evade their obligation to accurately report their income and pay their fair share of taxes will be brought before the court and face appropriate punishment, up to and including imprisonment."

          According to his plea agreement and court records, Snyder consistently failed to timely file tax returns and when he did file he underreported the amount of his business income. He purposely deposited less than all of his business income into his business bank account without informing his accountant. Instead, he took checks from his customers and signed them over to his suppliers (making them third-party checks) to pay for the materials and services used in his business. Because of this practice, his business account never showed his actual business income. Snyder also carried out his tax evasion scheme by depositing checks made payable directly to him for the work of his roofing business into his personal bank accounts, taking back cash at the same time, or negotiating the entire amount of the checks for cash. Snyder used some of this unreported cash to pay his employees.

          "This is a classic example of greed," said Manny Muriel, IRS-Criminal Investigation Special Agent in Charge of the Detroit Field Office. "Snyder blatantly disregarded the law to line his own pockets. He painstakingly took steps to avoid paying his fair share of taxes. IRS-Criminal Investigation will continue to seek out and find those who choose to disregard the tax laws."

          The IRS-Criminal Investigation Division, Grand Rapids, conducted the investigation, and Assistant U.S. Attorney Ronald M. Stella prosecuted the case.

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