PORTLAND, Oregon – An Oregon man was sentenced to federal prison today after failing to pay more than $ 1.7 million in personal income taxes in a complex dating back tax evasion case to 2001.
Robert Andrew Lund, of Lebanon, Oregon, was sentenced to 41 months in federal prison and three years on probation.
According to court documents, in the mid-1980s, after working for several years as a computer engineer and programmer for the Hewlett Packard company, Lund moved to Oregon and established a private computer consulting firm called Lund Performance Solutions ( LPS). LPS customers included large corporations, school districts, and healthcare companies located in the United States. In 1993, Lund paid $ 30,000 to an offshore trust promoter to establish layers of trusts in order to hide his LPS profits from the IRS. From 1994 to 1996, despite LPS being very profitable, Lund reported almost no income on his tax returns. Soon after, the IRS audited Lund and determined that he owed more than $ 2.7 million in taxes plus penalties.
Lund used his tax-free profits to purchase 90 acres of land outside of Eugene, Oregon, on which he built a 7,000 square foot house that was then valued at $ 950,000. Lund, a small plane pilot, also built a private airstrip on the property. Lund also purchased the old town hall and post office building in Albany, Oregon, a trailer park with multiple rental units and two rental homes. Lund ran LPS and several small businesses, including a health food store, bookstore, and scuba diving equipment and lessons business, in the Albany building.
Lund challenged his tax assessments in the US Tax Court and the Ninth Circuit Court of Appeals. Both claimed he owed the IRS unpaid taxes. In response, Lund stopped filing income tax returns altogether and began setting up numerous limited liability companies (LLCs) and trusts to conceal his income and assets. Meanwhile, Lund enlisted the help of a well-known Georgian tax-protesting lawyer, Kyle Weeks. Weeks later, he surrendered his license to practice and was found guilty of filing false income tax returns.
Over the next decade, the IRS sent Lund dozens of letters, invoices, and summons for financial records. Lund responded with his own letters claiming that he was not a U.S. citizen and therefore not subject to tax or IRS authority. Meanwhile, Lund continued to make extraordinary efforts to hide his assets and income from the IRS while stealing government aid programs. It has repeatedly transferred the title of its properties to various entities and straw people; concealed rental income by signing leases with the names of at least 16 different limited liability companies, partnerships and trusts; requested and received food stamps and Medicaid benefits; and convinced an employee to open a bank account in the name of one of Lund’s trusts. On his food stamp and Medicaid claims, Lund boldly claimed to be a part-time handyman who only made $ 810 a month. In total, Lund stole around $ 70,000 in public benefits, most of which was paid for by the federal government.
On June 12, 2019, a federal grand jury in Portland released an indictment charging Lund with tax evasion, failure to file personal income tax returns, obstructing or obstructing the IRS, and theft of public funds. Lund has also been charged in a separate federal case with making a false statement in a personal bankruptcy case.
On July 19, 2021, Lund pleaded guilty to tax evasion, failure to file personal income tax returns, and theft of food stamps and Medicaid benefits. All of Lund’s other charges were dismissed as part of his plea deal.
Upon conviction, US District Court Judge Michael H. Simon ordered Lund to pay more than $ 1.7 million in restitution to the IRS and $ 70,000 to the Oregon Health Authority.
Acting US attorney Scott Erik Asphaug of the Oregon District made the announcement.
This case was investigated by the IRS Criminal Investigation and continued by Seth D. Uram and Meredith DM Bateman, Assistant United States Attorneys for the District of Oregon.