Maryland Business Owner Pleaded Guilty to Tax Fraud

Robert David Michael admitted to stealing over $190,000 from the state through a scheme at his dealership.

Updated on Sept. 22, 2026 in Financial Crime

Bold flat-color editorial illustration of an austere neoclassical building facade, evoking the institutional consequences of tax fraud. — A Maryland business owner pleaded guilty to tax fraud on Tuesday after admitting to a scheme involving over $190,000 in stolen state funds. AI Illustration. Upload story photo >

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Robert David Michael, owner of the Easton-based B&E Motorsports, has pleaded guilty to felony theft and tax fraud. He admitted to falsifying paperwork on hundreds of vehicles to pay lower excise taxes to the State of Maryland.

Why it matters

The scheme resulted in a significant loss of public funds, as Michael collected full tax amounts from customers but submitted fraudulent, lower-value documents to state agencies.

Michael entered a guilty plea in the Circuit Court for Anne Arundel County for charges including perjury and identity fraud. He faces 18 months of incarceration followed by five years of supervised probation.

The players

Robert David Michael

He is the 56-year-old owner of B&E Motorsports in Easton, Maryland, who orchestrated the tax fraud.

Circuit Court for Anne Arundel County

This is the judicial body where the defendant entered his guilty plea and will be sentenced.

The details

Between July 2018 and June 2025, Michael used his business to facilitate the fraud by forging customer signatures on vehicle titles. Investigators discovered 165 instances of falsified jet-ski forms and 95 instances of doctored vehicle titles used to deflate costs for jet-skis, dirt bikes, and trailers.

The tax fraud scheme spanned from July 2018 to June 2025.
A Department of Natural Resources employee identified a pattern of undervaluing vessels in November 2023.
Robert David Michael entered his guilty plea on September 22, 2026.
The court scheduled the sentencing hearing for October 27, 2026.

Legal Context

This case highlights the enforcement of the Maryland vehicle excise tax collection requirements, which are designed to ensure fair revenue contribution from motor vehicle sales. The discovery of the pattern by state employees demonstrates how oversight mechanisms identify systemic fraud in business tax filings.

The investigation by state agencies serves as a reminder of the protocols in place to monitor business tax compliance. Residents and consumers are encouraged to verify that their vehicle registration and tax paperwork are handled accurately by dealerships.

The takeaway

Business owners in Maryland are subject to strict oversight regarding tax collections and documentation. Consumers should remain vigilant in checking that official documents signed at dealerships match the actual financial transactions performed.