Grosse Pointe Park man pleads guilty to money laundering, obstructing IRS
GROSSE POINTE PARK, Mich. (CBS DETROIT) - A Grosse Pointe Park man pleaded guilty Tuesday to money laundering and obstructing the IRS, according to the U.S. Department of Justice.
Matthew D. Adams owned a property management company called MDA Property Services from 2008 to 2017.
According to court documents, Adams sold illegal narcotics to the president of Company A, who paid for the drugs using Company A's funds.
"The buyer paid Adams with checks made out to MDA Property Services and other entities Adams owned so that they would appear to be legitimate payments for purported services rendered by Adams," according to the U.S. Department of Justice. "From 2013 through 2017, the buyer paid Adams more than $10 million for illegal narcotics."
Some of the checks were deposited into his personal bank account and others into business accounts, while the remainder, about $5.3 million, was cashed at a liquor store.
Officials say Adams caused his tax preparer to prepare false tax returns because Adams only provided the preparer with business bank records.
An IRS audit was conducted on Adams' personal and business tax returns in 2017 and 2018, and he told the IRS that all the income from his company was put into his business bank accounts, even though that was not true.
In addition, during the audit, he told the IRS that 90% of the funds his business received from Company A was for legitimate work when he knew only 3% was actually business related.
"During the course of his criminal conduct, Adams withdrew more than $1 million in cash of his illegal narcotics proceeds from business bank accounts and also used funds to acquire real estate," said the U.S. Department of Justice. "In addition, he spent over $1.25 million on private flights, golfing, jewelry, gambling, court-ordered child support, hotel stays and to purchase a firearm. Adams also bought a Cadillac Escalade, a Hummer and multiple classic cars."
His sentencing is scheduled for June 21. He is facing up to three years in prison for obstructing the IRS and up to 10 years for money laundering.
In addition, Adams also faces a period of supervised release, along with restitution and monetary penalties.
