Owner of Pegasus Home Corporation Gets His Wings Clipped by the IRS

David J. Simard, of Maryland, pled guilty in the U.S. District Court of one count of obstructing the lawful functions of the Internal Revenue Service and four counts of failing to file personal and corporate income tax returns.

Simard, a real estate flipper, received a notice from the IRS that he needed to supply documents in connection with an audit of his personal tax returns.  In less than one month after receiving this notice, Simard formed the Pegasus Home Corporation and starting buying and selling houses in the name of the corporation instead of his own.  Simard claimed that the ownership and control of Pegasus was his relative and had this relative apply for an employer identification number for Pegasus. Simard also had this relative open a bank account in the name of the Pegasus Corporation. Despite earning income, Simard did not file personal or corporate tax returns for 2009 and 2010.

Simard will be sentenced on October 12th and faces a maximum of three years in prison for obstructing the IRS and one year in prison for each count of failure to file tax return, as well as restitution and monetary penalties.