SEVERN, MD – Jerry Lee Redman, a businessman from Severn, Maryland, has been sentenced to 13 months in prison for evading federal income taxes. U.S. District Judge Julie Rubin also ordered Redman to serve one year of supervised release and to pay $894,338.04 in restitution to the United States.
Court documents revealed that Redman, owner of Redman Services Inc. (RSI), diverted funds from his business for personal use between 2014 and 2018. He made weekly cash withdrawals to cover personal expenses, including alcohol and gambling, without reporting these as income on his personal tax returns. Additionally, some withdrawals were falsely deducted as business expenses on RSI’s corporate tax returns.
Redman also directed clients to write checks payable directly to him instead of RSI, depositing these into his personal bank account and evading their inclusion in the company’s corporate tax returns. His actions resulted in a tax loss of over $660,000 to the IRS.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced the sentence. The case was investigated by the IRS Criminal Investigation and prosecuted by Trial Attorneys Melissa S. Siskind and Christina M. Grimes of the Tax Division.