Texas Roofing Company Owner Sentenced in $1.4M Tax Case

Engineered Metals Company owner David Stone was also ordered to pay about $1.38 million in restitution after obstructing IRS collection efforts.

The owner of a Texas roofing, siding and sheet metal company has been sentenced to 30 months in federal prison for obstructing IRS efforts to collect approximately $1.4 million in unpaid employment taxes.

David Stone, owner and operator of Engineered Metals Company, will also serve one year of supervised release and pay approximately $1.38 million in restitution to the federal government, according to the U.S. Department of Justice.

Federal prosecutors said Stone willfully failed to turn over employment taxes collected on behalf of his employees, prompting the IRS to begin collection proceedings. After those efforts began, Stone stopped filing individual income tax returns and used company accounts to pay personal expenses, including child support and alimony, in an effort to conceal his income from the IRS.

The conduct continued from 2013 through 2024 and resulted in an estimated $1.4 million tax loss, according to court documents and statements cited by the DOJ.

Stone pleaded guilty in April to one count of corruptly endeavoring to obstruct the administration of federal tax laws. At the time of his plea, he faced a maximum sentence of three years in prison.

IRS Criminal Investigation investigated the case, and the Justice Department’s Fraud Division Tax Section prosecuted it.

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Tanja Kern is director of content strategy and managing editor for Roofing Contractor. She covers economic trends and the intersection of architecture, design, and construction, focusing on the forces reshaping the industry. She develops and amplifies content that connects roofing professionals with the intelligence they need to compete and grow.

With more than 20 years of experience, Tanja has written for national business, consumer and trade publications. She holds a Master of Science in magazine publishing from Northwestern University's Medill School of Journalism.