August 30, 2010 (CHICAGO) --
The former owner of a landfill in southwest suburban Joliet and his employee were charged Monday with federal income tax evasion for allegedly failing to declare income from the business on their individual tax returns.Frank Schmidt, 40, of northwest suburban Glenview, who was the sole owner of the Land Reclamation Services landfill, was charged with five counts of tax evasion after allegedly failing to pay more than $2 million in federal taxes between 2004 and 2008 on approximately $11.5 million in income. In the same case, Dominic Grande, 35, also of Glenview, an LRS employee, was charged with four misdemeanor counts of failing to file a federal income tax return for four years in which he allegedly was paid in cash. Federal authorities say both men will plead guilty.
In 2008, Schmidt sold LRS at a profit of approximately $9 million, which should have been, but was not, reported on tax forms as part of his individual tax return, the charges allege. For 2008 alone, Schmidt allegedly evaded the payment of federal income taxes totaling more than $1.3 million.
The charges against Grande allege that between 2005 and 2008 he failed to file federal income tax returns when he received annual gross incomes ranging from $39,000 to $127,569, or a total of $322,569, mostly in unreported cash wages.
Schmidt faces up to 25 years in prison total. Grande faces up to four years total.