Robert Lund was sentenced to prison on a tax evasion case that goes back to 1997, when he was audited by the IRS and it was determined he owed more than 2.7 million dollars in taxes plus penalties.
Lund appealed the tax assessment and lost. In response, he stopped paying taxes altogether and continued to hide his assets and income by transferring title to his properties to various straw entities and people; hid rental income by signing leases with the names of at least 16 different LLCs, partnerships, and trusts, and even applied for and received food stamps and Medicaid benefits. On his food stamp and Medicaid applications, Lund claimed to be a part-time handyman earning just $810 a month. He stole approximately $70,000 in public benefits.
Lund used his untaxed profits to buy 90 acres of land in Oregon, on which he built a 7,000 square foot house with a private landing strip. He purchased a former city hall and post office building, a trailer park with rental units, and two rental houses. In addition to the consulting business he also owned a health food store, a bookstore, and a scuba diving equipment and lessons company.
After ignoring dozens of letters, bills, and summonses for financial records from the IRS, Lund was finally arrested. He was sentenced to 41 months in prison and ordered to pay more than $1.7 million in restitution to the IRS and $70,000 to the Oregon Health Authority.