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Government Actions

United States of America vs. David T. Aaron

DNC Holdings LLC (“DNC”) and Samber Contracting LLC
(“Samber”), were single-member limited liability corporations, each of which owned 50% of Marlin. The Defendant, DAVID T. AARON, owned and controlled 100% of
DNC. AARON’s partner, Russell Ultes, owned and controlled 100% of Samber.

Pursuant to the Internal Revenue Code and associated regulations,
single-member limited liability corporations are “disregarded entities’—that is,
entities that, rather than file their own tax returns with, and pay taxes to, the Internal
Revenue Service, are required to have their gains, losses, and other results passed on
to the U.S. Individual Income Tax Returns, Forms 1040, of their owners, who are
known as “members.”

As a result of the ownership structure the defendant DAVID T. AARON
and his partner, Russell Ultes, created for Marlin, each effectively owned 50% of
Marlin and therefore was required to report 50% of the gains, losses, and other results
of Marlin on their respective Forms 1040.

COUNT ONE

Tax Evasion
(26 U.S.C. § 7201)
1. The allegations contained in paragraphs 1 through 5 of the Introduction
are incorporated by reference herein.

From an unknown date, but no later than on or about January 1, 2018,
and continuing through in or about October 2020, in the Middle District of Florida
and elsewhere, the defendant,
DAVID T. AARON,
did willfully attempt to evade and defeat a substantial portion of the income due and
owing by AARON to the IRS for the 2018 and 2019 tax years by various means,
including: (a) causing millions of dollars of corporate receipts, in the form of checks
payable to Marlin, to be diverted from the corporate bank accounts of Marlin; (b)
cashing, and causing the cashing, of those diverted checks at check-cashing businesses
located in Lee and Collier Counties; (c) using the cash generated from the check cashing activities to be used for various personal purposes, including to purchase JetSkis and luxury automobiles; (d) making, and causing the making, of entries in the
books and records of Marlin that falsely understated the gross receipts and income of
Marlin for the 2018 and 2019 tax years; (e) providing false information to Marlin’s tax
return preparers and thereby causing the preparation of Forms 1120S for Marlin for
the 2018 and 2019 tax years that falsely and fraudulently unreported the gross receipts
and income of Marlin; (f) causing the filing with the IRS of Forms 1120S for Marlin
for the 2018 and 2019 tax years that falsely and fraudulently understated the gross
receipts and income of Marlin; (g) signing, and filing with the IRS, Forms 1040 for
himself for the 2018 and 2019 tax years that falsely and fraudulently omitted over $1.5
million of income, leading to the evasion of over $580,000 of income tax.