ROCKLIN, Calif. (KTXL) — A pair of Rocklin business owners were charged with laundering money for someone they thought was a drug dealer, according to the Department of Justice.
The DOJ says 56-year-olds Daniel Stewart and Luke Burroughs created a scheme to disguise personal expenses as business expenses with their company, Western Baler and Conveyor.
Their idea, however, didn’t pan out when their home renovations, worth over $350,000, didn’t offset the company’s tax liability.
As a result, in 2019, they complained about having to pay $300,000 to the Internal Revenue Service, according to the DOJ.
The DOJ says that’s when they agreed to help an interstate drug dealer, who was really an undercover officer.
During March 2019 and October 2020, Stewart and Burroughs are suspected of writing company checks for over $1 million to help the drug dealer.
Stewart and Burroughs could face up to 20 years if they are convicted.