Ohio trucking company operator sentenced to 30 months for evading income taxes

The proprietor of a trucking company in northeastern Ohio has received a prison sentence of 30 months for evading income taxes. Alice Martin, from Louisville, Ohio, admitted in August to multiple charges related to income tax evasion linked to her company, Martin Logistics, located near Canton, Ohio.

Martin, 66, must also pay nearly $1.98 million in restitution. The sentence was handed down earlier this week by U.S. District Judge Donald Nugent of the Northern District of Ohio. This 30-month term exceeds the 24-month minimum recommended by the U.S. Attorneys office.

According to a May 2024 indictment, Alice Martin and her husband owned Martin Logistics, but Alice Martin controlled all business operations. The company, which provided services as a contractor for the U.S. Department of Defense, was licensed to transport and broker freight. Much of the freight moved from the Defense Logistics Agency facility in New Cumberland, Pennsylvania, to a Martin-leased yard in Mechanicsburg, from where it was dispatched to final destinations using Martin Logistics trucks or other carriers contracted through Martins brokerage operations.

The indictment details that between 2012 and 2013, Martin Logistics experienced financial difficulties and accumulated tax debt for the years 2011 through 2013. The IRS sought repayment and filed liens against the company, which also faced lawsuits from other parties. The indictment noted that Martin Logistics reputation declined, causing other carriers to refuse to transport its freight due to late payments.

Concealing Operations

The scheme outlined in the indictment aimed to create the appearance that Martin Logistics had no revenue or employees. This ruse initially convinced the IRS that the companys tax debt was uncollectable, prompting the agency to close the case. However, the company continued operations through affiliated shadow entities, intending to evade taxes.

The U.S. Attorney described the plan as a strategy to phase out the company after it became burdened with tax debt to avoid paying taxes to the Internal Revenue Service (IRS). The shadow companies rarely filed tax returns, with only occasional individual IRS 1040 forms submitted. Overall, Martins unreported taxable income totaled around $3.67 million, with an evaded tax amount estimated at $1.17 million.

Persistent Evasion

Even after pleading guilty, Martin continued efforts to hide assets from a U.S. probation officer and refused to provide documents requested by authorities. The pre-sentencing memo highlighted a long history of deliberate tax law violations spanning at least four decades, including previous federal tax liens for failure to file personal taxes between 1989 and 1992. The report described Martins record as a lifelong cat and mouse game with tax authorities.

The courts sentence marks the conclusion of a case involving extensive and deliberate attempts to circumvent federal tax obligations, underscoring the consequences of prolonged and intentional tax evasion schemes.

Author: Zoe Harrison