Robert Lund was audited by the IRS and owed more than 2.7 million dollars in taxes. He was sentenced to prison for this case of tax evasion that goes all the way back to 1997. Lund lost when he appealed the tax assessment. In response, he stopped paying taxes altogether and continued to hide his assets and income by transferring 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, and even applied for and received food stamps and Medicaid benefits. Lund claimed to be a part-time handyman earning just $810 a month on his food stamp and Medicaid applications. He stole approximately 70,000 dollars in public benefits.
Lund bought 90 acres of land in Oregon, on which he built a 7,000 square foot house with a private landing strip with his untaxed profits. Lund was sentenced to 41 months in prison and ordered to pay more than $1.7 million in restitution to the IRS and $70,000 to the Oregon Health Authority.