Lebanon man sentenced for tax evasion

A Lebanon man was sentenced to roughly three and a half years in federal prison Monday, Nov. 15, after failing to pay more than $1.7 million in personal income taxes in a complex tax evasion case dating back to 2001.
According to court documents, in the mid 1980s, after working for several years as a computer engineer and programmer for Hewlett-Packard company, Robert Andrew Lund moved to Oregon, where he launched a private computer consulting company called Lund Performance Solutions (LPS). The firm’s clients included large businesses, school districts and health care companies throughout the country.
The U.S. Attorney’s Office – District of Oregon office reported that in 1993, Lund paid $30,000 to an offshore trust promoter to establish layers of trusts to hide his LPS profits from the Internal Revenue Service. From 1994 to 1996, he reported almost no income on his personal income tax returns. The IRS then audited him and determined that he owed more than $2.7 million in taxes plus penalties.
Lund used his untaxed profits to buy 90 acres of land outside Eugene, where he built a 7,000-square-foot house that was later appraised at $950,000. A small aircraft pilot, he also built a private landing strip on the property. Other purchases included Albany’s former city hall and post office building, a trailer park with multiple rental units and two rental houses. Lund ran LPS and several smaller businesses, including a health food store, bookstore and a scuba-diving equipment and lessons company, from the Albany building.
He challenged his tax assessments in U.S. Tax Court and the Ninth Circuit Court of Appeals. Both affirmed that he owed the IRS unpaid taxes. In response, Lund reportedly stopped filing tax returns and created limited liability companies (LLC) and trusts to conceal his income and assets. He also sought the assistance of Kyle Weeks, described as a “known tax protestor” attorney from Georgia. Weeks later surrendered his law license and was convicted for filing false tax returns.
Over the next decade, the IRS sent Lund dozens of letters, bills and summonses for financial records. He replied with his own letters claiming he was not a U.S. citizen and therefore not subject to taxation or the IRS’s authority. He continued to go to extraordinary lengths to hide his assets and income from the IRS while also allegedly stealing from government assistance programs.
He repeatedly transferred title to his properties to various straw entities and people; hid rental income by signing leases with the names of at least 16 different LLCs, partnerships and trusts; applied for and received food stamps and Medicaid benefits; and convinced an employee to open a bank account on behalf of one of his trusts. On his food stamp and Medicaid applications, Lund claimed to be a part-time handyman earning just $810 a month. In total, he reportedly stole approximately $70,000 in public benefits.
On June 12, 2019, a federal grand jury in Portland returned an indictment charging Lund with tax evasion, failure to file personal income tax returns, obstructing or impeding the IRS and theft of government funds. He was also charged in a separate federal case with making a false statement in connection with a personal bankruptcy case.
On July 19, 2021, he pleaded guilty to tax evasion, failure to file personal income tax returns and stealing food stamp and Medicaid benefits. All of his remaining charges were dismissed as part of his plea agreement.
During sentencing, U.S. 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 U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS Criminal Investigation and prosecuted by Seth D. Uram and Meredith D.M. Bateman, Assistant U.S. Attorneys for the District of Oregon.