Acting U.S. Attorney Stephen M. Schenning announced Friday a Maryland man who acquired, updated and sold real estate was sentenced to 36 months in prison for failing to file tax returns and obstructing the Internal Revenue Service.
Fifty-eight-year-old David J. Simard of Maryland sold real estate in Washington, D.C. and Maryland since the 1980s. The IRS notified Simard of an audit of his personal income taxes in January 2008. The IRS requested information and documents from third parties regarding Simard’s real estate transactions. Short after, Simard created a corporation known as Pegasus Home and started buying and selling real estate properties utilizing its name instead of his own, according to court documents.
Simard acquired and sold a total of 96 properties in the name of Pegasus from 2009 and 2010. To avoid detection, Simard represented Pegasus as belonging to a family member, who applied for an EIN for Pegasus. Simard utilized the EIN when purchasing and selling real estate properties.
Simard directed the same family member to open a bank account for Pegasus. The last time Simard filed a timely income tax return was in 1995. It was determined that Simard caused a loss of $1.5 million, according to the court records.