Two men indicted on tax fraud and operating an unlicensed money transmitting business
2021-06-28 · Press release
ALBUQUERQUE, N.M. – David Wellington, 62, of Albuquerque, and Jerry Shrock, 46, of Meadowview, Virginia, were indicted on June 23 by a federal grand jury charging them with conspiracy to defraud the United States. Wellington faces an additional count of operation of an unlicensed money transmitting business. Shrock is scheduled for an arraignment on July 15, while Wellington is scheduled to make an initial appearance on July 7.
According to the indictment, since at least 2005, Wellington and his business partner operated National Business Services, which promoted, sold and created Limited Liability Companies (LLCs) under New Mexico State Law. For many clients, National Business Services allegedly would open bank accounts under the names and IRS employer identification numbers (EIDs) of the LLCs, and the clients – whose names were not associated with the bank accounts - would have access to the funds in those accounts.
Since at least 2006, Shrock was a client of Wellington and National Business Services. Through National Business Services, Wellington allegedly created multiple LLCs in New Mexico for Shrock, including White Top Enterprise LLC. National Business Services allegedly opened a bank account in the business name and EID of White Top Enterprise and provided Shrock with access to the funds in the account. Between May 9, 2011, and June 30, 2015, Shrock allegedly deposited and withdrew approximately $4,875,940, of which at least $4,347,101 was income for which Shrock never filed a personal or business tax return with the IRS.
At the time of the deposits and withdrawals, Shrock was subject to an outstanding IRS lien for unpaid taxes, penalties and interest in the amount of approximately $1 million. Because it was not in his name, using the White Top Enterprise account allegedly allowed Shrock to generate and access income while evading both the outstanding assessment and personal and business income taxes.
An indictment is only an allegation. Defendants are presumed innocent unless and until proven guilty. If convicted, Shrock faces up to five years in prison and Wellington faces up to 10 years in prison.
IRS Criminal Investigation investigated this case. Assistant U.S. Attorney Jeremy Peña is prosecuting the case.
- district_office
- District of New Mexico
- usa_name
- Jeremy Peña
- event_type
- indictment
- judge_name
- judge_title
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- max_penalty_text
- up to five years in prison and Wellington faces up to 10 years in prison
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- money_amounts
- $4,875,940, $4,347,101, $1 million
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- https://www.justice.gov/usao-nm/pr/two-men-indicted-tax-fraud-and-operating-unlicensed-money-transmitting-business
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| participant_id | name | role | title | organization | location | age | nationality | status |
|---|---|---|---|---|---|---|---|---|
| 1900 | David Wellington | defendant | National Business Services | Albuquerque, New Mexico | 62 | indicted | ||
| 1901 | Jerry Shrock | defendant | Meadowview, Virginia | 46 | indicted | |||
| 1902 | Jeremy Peña | prosecutor | Assistant U.S. Attorney | U.S. Attorney's Office |
| agency_id | agency_name | abbreviation | role | office_location | agents_mentioned | contribution |
|---|---|---|---|---|---|---|
| 1188 | IRS Criminal Investigation | IRS CI | investigation | investigated this case | ||
| 1189 | U.S. Attorney's Office | USAO | prosecution | Jeremy Peña | prosecuting the case |
| charge_id | charge_description | statute | severity | max_penalty | fine_amount | defendant | status | participant_id | cl_docket_id | count_num | is_1960 | verified_1960 | source | updated_at |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 982 | Conspiracy to Defraud the United States | 18 U.S.C. § 371 | 5 years in prison | David Wellington and Jerry Shrock | indicted | 0 | enrichment | |||||||
| 984 | Tax Evasion | 26 U.S.C. § 7201 | 5 years in prison | Jerry Shrock | indicted | 0 | enrichment | |||||||
| 983 | Operating an Unlicensed Money Transmitting Business | 18 U.S.C. § 1960 | 10 years in prison | David Wellington | indicted | 1 | enrichment | 2026-09-16T19:45:57+00:00 | ||||||
| 2913 | unlicensed money transmitting business | 1 | press | 2026-09-16T19:45:57+00:00 |
| fin_id | action_type | amount | currency | description | asset_type | defendant | status |
|---|---|---|---|---|---|---|---|
| 631 | seizure | $4,875,940 | USD | Funds deposited and withdrawn from White Top Enterprise LLC bank account | cash | Jerry Shrock | null |
| 632 | lien | $1,000,000 | USD | Outstanding IRS lien for unpaid taxes, penalties and interest | null | Jerry Shrock | null |
| victim_id | victim_type | description | number_affected | loss_amount | geographic_scope | vulnerability_factors | impact_description |
|---|---|---|---|---|---|---|---|
| 254 | government | United States government | United States | Loss of tax revenue due to tax evasion facilitated by unreported income |
| quote_id | quote_text | speaker_name | speaker_title | speaker_organization | quote_type | context | significance |
|---|---|---|---|---|---|---|---|
| 1141 | An indictment is only an allegation. Defendants are presumed innocent unless and until proven guilty. | statement | Legal presumption of innocence | Establishes the legal standard for the case |
| theme_id | theme_name | description | significance | related_statutes | geographic_scope | temporal_aspects | stakeholders |
|---|---|---|---|---|---|---|---|
| 1240 | Tax Fraud | Shrock allegedly failed to file tax returns for income funneled through LLC accounts, evading federal taxes. | Central charge in the indictment, demonstrating intentional tax evasion through illicit financial structures. | 26 U.S.C. § 7201, 26 U.S.C. § 7203 | National | Historical trend (2006–2015) | IRS, Defendants, Taxpayers |
| 1241 | Unlicensed Money Transmitting | Wellington allegedly operated National Business Services without a license to transmit funds via LLC bank accounts. | Core charge against Wellington, violating federal financial regulations. | 18 U.S.C. § 1960 | National | Historical trend (2005–2015) | Financial regulators, Defendants, Financial institutions |
| 1242 | Conspiracy to Defraud the U.S. | Wellington and Shrock allegedly colluded to evade taxes and regulatory oversight through LLCs. | Primary conspiracy charge uniting both defendants' roles. | 18 U.S.C. § 371 | National | Historical trend (2005–2015) | DOJ, IRS, Defendants |
| 1243 | LLC Misuse for Tax Evasion | Creation of New Mexico LLCs with anonymous bank accounts to conceal income ownership. | Enabling mechanism for tax fraud and money laundering. | null | Local (New Mexico) | Historical trend (2005–2015) | State agencies, Business partners, Clients |
| 1244 | IRS Lien Evasion | Shrock used LLC accounts to bypass an existing $1M IRS tax lien. | Demonstrates intentional disregard for prior tax obligations. | 26 U.S.C. § 6321, 26 U.S.C. § 6325 | National | Recent development (2011–2015) | IRS, Debtors, Lien holders |
| 1245 | IRS Criminal Investigation Role | IRS-CI led the investigation into the defendants' financial activities. | Highlights federal law enforcement's involvement in tax fraud cases. | null | National | Ongoing | IRS Criminal Investigation, Prosecutors, DOJ |
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