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.