Joseph Lee Scott Deardorff, of Kansas City, MO, owner and operator of Totally Recovery and Recycling, LLC, was indicted in October, 2016 on charges of willfully and intentionally evading taxes and hiding assets from the IRS.
From 2010 to 2012, Deardorff had almost $500,000 in taxable income but failed to file accurate returns.
In order to conceal his true income from the IRS, Deardorff cashed checks he received from the sale of scrap metal at various places such as gas stations and check cashiers. The amount of the checks he cashed from 2010-2012 totaled $1.9 million. When he sold the scrap metal, he requested to be paid in checks for amounts under $1,500, making it easier to cash the checks.
Deardorff used the cash to purchase multiple properties, both for business and investment purposes, multiple Corvettes, and equipped his tow trucks with high end GPS units, high-end speakers, DVD and CD players.
In addition, Deardorff paid all of his employees in cash and filed to file any W-2 for any of his employees from 2010-2012.