(WWJ) - A Grosse Pointe Park man has been sentenced for obstructing the IRS and money laundering.
Matthew Adams sold illegal drugs to a person identified as “Individual A” from 2008 to 2017. Individual A was the president of “Company A,” according to a statement from the U.S. Attorney’s Office.
“Individual A paid Adams for the illegal narcotics with funds embezzled from Company A,” the statement said.
Payments for the drugs were made to appear like they were payments to Adams’ company, MDA Property Services, from Company A for legitimate work.
Adams was paid more than $10 million in checks from Company A from 2013 through 2017 for drugs for Individual A.
Authorities said Adams didn’t report the income he made from selling drugs on his tax returns from 2013 to 2016. He also didn’t file a 2017 tax return.
The checks from Company A were deposited in Adams’ person and business accounts. He also cashed approximately $5.3 million in checks at a local liquor store.
Adams’ tax preparer was only told about the deposits in one bank account. The returns they filed didn’t report all of Adams’ income.
MDA and Adams were audited by the IRS in 2017. Officials said Adams lied to the agent multiple times during the audit, “including by telling the agent that 90% of the money MDA Property Services was paid by Company A was for legitimate work, when the true figure was 3%.”
Adams used over $1 million in cash from the drug sales to buy real estate. Over $1.25 million was spent on “personal expenses such as private flights, golfing, jewelry, gambling, court-ordered child support, hotels and to purchase a firearm,” the press release said. Adams also purchased multiple vehicles.
Adams was sentenced to three years in prison as well as three years of supervised release. He was also ordered to pay over $3 million to the IRS in restitution.