GREENSBORO, N.C. -- On Monday, a Mebane city councilman received his sentence for tax fraud.
William Robert Hupman Jr. was sentenced to serve 17 months in prison followed by one year of supervised release for tax fraud, according to the Justice Department and the Internal Revenue Service (IRS). Hupman was ordered to pay $103,420 to the IRS.
The sentencing comes months after Hupman pleaded guilty, in May, to Corruptly Endeavoring to Obstruct or Impede the Due Administration of the Internal Revenue laws.
According to court documents and court evidence, Hupman managed and controlled Security Concepts LLC (SC), a security alarm company based in Mebane. Instead of receiving a salary from SC, Hupman received income by using an SC debit card to pay his expenses. Despite receiving more than $770,000 in such fees between 2007 and 2011, prosecutors proved that Hupman had not filed an individual income tax return since 2006.
The documents also indicated that Hupman failed to pay employment taxes to the IRS, although the money was being withheld from paychecks. SC last paid over employment taxes and filed the required tax form for the third quarter of 2009, despite the fact that employment taxes were actually withheld from the wages of SC employees.
Court officials said Hupman did not pay employment taxes or file the required tax form for the fourth quarter of 2009 or any of the quarters in 2010 and 2011. He also has not paid the federal unemployment taxes owed or filed the required tax form for years 2009, 2010 or 2011. According to court documents and court proceedings, the criminal tax loss was $103,420.