A federal judge has sentenced Paul Archer, 46, a former Maine resident now living in Florida, to two years in prison for tax evasion and bankruptcy fraud. Archer was also ordered to serve three years of supervised release.
According to federal court records, Archer owed approximately $1 million in federal taxes following an IRS audit of his online marketing business, which generated millions in revenue between 2013 and 2015. Instead of paying the debt, prosecutors say Archer hid assets through shell companies, family accounts, and cryptocurrency.
From April 2018 through November 2019, Archer funneled money through two LLCs—Max Tune Up, LLC and Stealth Kit, LLC—and used accounts held by his wife and father. Investigators found that Stealth Kit processed over $2 million in wire transfers, and Archer also traded several hundred thousand dollars in Bitcoin.
When Archer filed for Chapter 7 bankruptcy in March 2019, he falsely claimed to have less than $50,000 in assets and denied any connection to the LLCs or recent asset transfers, making repeated false statements under oath to creditors and the U.S. Bankruptcy Court for the District of Maine.
The sentencing follows a joint investigation by the FBI and IRS Criminal Investigation, which revealed the elaborate scheme to conceal income and evade taxes.