Search warrant released in scrap yard raid - 13abc.com Toledo (OH) News, Weather and Sports

It's a story we broke on 13abc Action News. A local scrap yard raided by agents from the Internal Revenue Service. We're learning more about the investigation. 13abc has obtained federal court documents that state why agents raided the Fulton county business. 

The search warrant states undercover agents watched the business for months. They're accused of tax fraud and commingling their personal and business bank accounts.

The owners of Ohio Scrap Corporation are accused of numerous criminal offenses. Court documents say the owners Carrie and Todd Zappone were running a tax evasion scheme.
Federal agents raided the scrap yard which sits on 28 plus acres. A worker who didn't want to show his face says the agents questioned every employee.

"The question pertained to asking me had to deal with just payroll any forms I ever filled out when I got hired in. How do I get my check and I told them that basically at the end of the week its cash," said an employee.  

Court documents show investigators collected credit card receipts, computers, personal planners, bank statements and other financial records. Carrie Zappone is accused of structuring cash withdrawals from her personal and business bank accounts in an effort to avoid the filing of currency transaction reports with the IRS.    

Agents say the couple have not filed the required business tax returns either. They've allegedly never reported more than two employees and minimal wages when they did file employment tax returns.  A former customer says he's not shocked.

"I quit dealing with the man a year and a half ago. I started weighing my loads before I bought them in. I would got to the elevator and get my loads weighed and I bring it here things weren't adding up so I quit dealing with him at that point. If you lie about your weights you lie about anything"
     
Agents searched the Zappones home in Swanton too. They carried out boxes of potential evidence. The legal documents state Zappone failed to file personal tax returns for 2010 or 2011 though they deposited almost $200,000 to their joint personal bank account.

The documents also state Todd Zappone made over $20,000 in mortgage interest payments both years. The mortgage payments can't be attributed to asset accumulations from prior tax yeas as Carrie Zappone reported a negative income from 2007-2009 and Todd Zappone reported only a moderate adjusted gross income and a minimal or negative taxable income those same years,
 
No official charges or arrest have been made in this case yet.