$2.5M IRS fraud lands Cape Coral roofing company owner in prison

The owner and manager of Nastar Roofing, a Cape Coral roofing company, have been sentenced to three years and one day in federal prison after pleading guilty in November to committing tax fraud for not paying at least $2.5 million in money owed to the IRS.

William Skaggs Jr., the company’s owner, and Billie Adkison, its manager, must also serve three years of supervised release after leaving prison. The court will determine restitution at a later date, according to a statement. 

The U.S. Department of Justice says Skaggs and Adkinson admitted to using cash to pay employees in order to avoid paying federal withholding taxes.

According to the Justice Department, an investigation by the IRS Criminal Investigation Division and the plea agreements when the pair pleaded guilty in November, here is what happened:

Between 2013 and 2023 the Skaggs and Adkinson would make cash withdrawals on Thursdays and Fridays to cover payroll, paying employees for their work and expenses.

The pair knowingly avoided withdrawing the required taxes from the employees’ pay nor did they pay Nastar’s share.

Other times, though, Nasatar would use a payroll company to issue nominal paychecks with taxes withheld. But it was not told of the cash payments.

The payroll company filed the required reports with the IRS, but those reports were false because the cash payments were not included.

In all, Nastar withdrew $21 million in cash and avoided paying $2.48 million in payroll taxes, according to the plea agreement.

Trial attorney Kevin Schneider of the tax division and as well as former Assistant U.S. Attorney Michael V. Leeman and current Assistant U.S. Attorney Benjamin Winter for the Middle District of Florida prosecuted the case.