Trucking Company Operator Indicted for Tax Evasion Publisher: U.S. Attorney's Office, Northern District of Ohio Byline: Jessica Salas Novak Dateline: Cleveland, Ohio Date: 7 May 2024 Subjects: American Government , Crime, Trucking Topics: Alice F. Martin, Martin Logistics

Owner allegedly used several entities and a nominee to conceal income

CLEVELAND – A federal grand jury has returned a seven-count indictment charging Alice F. Martin, 59, of Louisville, Ohio accusing her of attempting to evade the assessment of income taxes from 2013 through 2018. Martin is also accused of attempting to evade the payment of previously taxes, penalties, and interest from 2011 through 2013, all tied to Martin Logistics, a trucking company which she owned and operated.

According to the indictment, Martin set forth a plan to phase out Martin Logistics after it became burdened with tax debt in order to make herself, and Martin Logistics, uncollectable to the Internal Revenue Service. Martin directed one of her employees to open a new company, TSA Transportation, which would serve as Martin’s nominee trucking business. Beginning January 2013, contracts for trucking services were primarily bid under TSA Transportation’s name, but the income TSA Transportation received was directly deposited into a bank account for another entity that Martin owned and controlled, A.F. Martin. In addition, Martin placed Martin Logistics’ assets, including trucks and trailers, into the name of yet another Martin-owned company, Martin Global.

From around 2013 to 2018, Martin directed approximately $18 million in gross receipts associated with TSA Transportation contracts to be deposited into the A.F. Martin banking account. Despite this, Martin regularly failed to file individual and corporate tax returns related to her trucking entities or and failed to pay the taxes on her income. Martin also made several misrepresentations to the IRS related to the finances of Martin Logistics. After her fraudulent scheme was discovered, Martin caused several more misrepresentations to be made to the IRS related to the filing status of her income tax returns.

Martin received over $3.6 million in unreported taxable income resulting in her evading the IRS’s assessment of approximately $1.2 million in taxes due between 2013 and 2018.

An indictment is only a charge and not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and, in most cases, it will be less than the maximum.

The investigation was conducted by the IRS-Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Edward Brydle.

Jessica Salas Novak
Jessica.Salas.Novak@usdoj.gov
(216) 622-3921

Updated May 7, 2024