Exposing Corruption, Injustices and the Truth.
| O'Fallon Watchdog |
| Watchdog Headlines ! |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| O'Fallon Watchdog |
Exposing Corruption, Injustices and the Truth.
Tow company operator charged in tax case
By Robert Patrick
ST. LOUIS POST-DISPATCH
09/06/2007
Federal prosecutors have accused a Wentzville tow company operator of failing to report hundreds of thousands of
dollars he made with his towing business.
Rodney E. Sherman, 52, was indicted Thursday in federal court in St. Louis on seven felony counts of filing false tax
returns.
The indictment accuses Sherman, who operates Budget Towing at 425 N. Business Highway 61 in Wentzville, of failing to
report $418,000 in cash income to tax preparers preparing the company's 2002 to 2004 tax returns.
The indictment says that Sherman also used company funds to make payments on his behalf, meaning tax returns filed for
he and his wife were understated.
Each charge carries a maximum penalty of three years in prison.
Sherman could not be reached for comment. Allegations of overcharging by Budget Towing surfaced at least as far back
as 2005, when federal and local authorities raided the company and seized computers and other items.
Watchdog Response: Well the long awaited indictment of Budget Towing’s owner Rodney Sherman has come with a
surprise. While seven felony accounts of filing false tax returns may not be surprising for someone allegedly involved in
fraudulent billing practices. What is a surprise is no indictments yet on the alleged fraudulent billing practices. A practice
that Budget’s own employee’s spoke of in their interviews with the media. What’s up?
The Watchdog feels this may be the tip of the iceberg with more indictments coming for Rodney Sherman and possibly
others. In light of the fact that Rodney Sherman could be facing spending the rest of his life in prison. There must be
some tense discussions taking place with these first allegations being a shot over Rodney’s Sherman’s bow.
Of further interest Mrs. Schellert has stated that Rodney Sherman paid his employee’s a five dollar bonus for every car
they towed to Budget’s lot from O’Fallon so they could overcharge them. Mrs. Schellert told reporters that she met with O’
Fallon’s former Major Mark Henke seven months before the raid to tell what she knew. "I sat down with him and showed
him everything I had all the documents I had to back up what I was saying. He basically told me the citizens of O'Fallon did
not pay these charges insurance companies did and there was nothing he could do about it." She also stated she spoke
to former Police Chief Steve Talbott but to no avail.
In one report she was told because Budget Towing isn’t located in O’Fallon that there was nothing the O’Fallon Police
department could do about it. So what does Steve Talbott do a few months later. He put his arms around Rodney
Sherman and gives Budget towing a glowing recommendation to the former Board of Alderman. Sorry folks that just doesn’
t pass the Watchdog sniff test. No wonder Rodney felt comfortable with overcharging cars towed from O’Fallon to Budget’s
lot.
Of further interest Council members Jeff Schwentker and Bill Hennessy. Along with former council member Peter Cantwell
have all been big supporters of bringing Budget towing and Steve Talbott back to O’Fallon. Do you think they are doing
this because they are looking after your best interest?
By Robert Patrick
ST. LOUIS POST-DISPATCH
09/06/2007
Federal prosecutors have accused a Wentzville tow company operator of failing to report hundreds of thousands of
dollars he made with his towing business.
Rodney E. Sherman, 52, was indicted Thursday in federal court in St. Louis on seven felony counts of filing false tax
returns.
The indictment accuses Sherman, who operates Budget Towing at 425 N. Business Highway 61 in Wentzville, of failing to
report $418,000 in cash income to tax preparers preparing the company's 2002 to 2004 tax returns.
The indictment says that Sherman also used company funds to make payments on his behalf, meaning tax returns filed for
he and his wife were understated.
Each charge carries a maximum penalty of three years in prison.
Sherman could not be reached for comment. Allegations of overcharging by Budget Towing surfaced at least as far back
as 2005, when federal and local authorities raided the company and seized computers and other items.
Watchdog Response: Well the long awaited indictment of Budget Towing’s owner Rodney Sherman has come with a
surprise. While seven felony accounts of filing false tax returns may not be surprising for someone allegedly involved in
fraudulent billing practices. What is a surprise is no indictments yet on the alleged fraudulent billing practices. A practice
that Budget’s own employee’s spoke of in their interviews with the media. What’s up?
The Watchdog feels this may be the tip of the iceberg with more indictments coming for Rodney Sherman and possibly
others. In light of the fact that Rodney Sherman could be facing spending the rest of his life in prison. There must be
some tense discussions taking place with these first allegations being a shot over Rodney’s Sherman’s bow.
Of further interest Mrs. Schellert has stated that Rodney Sherman paid his employee’s a five dollar bonus for every car
they towed to Budget’s lot from O’Fallon so they could overcharge them. Mrs. Schellert told reporters that she met with O’
Fallon’s former Major Mark Henke seven months before the raid to tell what she knew. "I sat down with him and showed
him everything I had all the documents I had to back up what I was saying. He basically told me the citizens of O'Fallon did
not pay these charges insurance companies did and there was nothing he could do about it." She also stated she spoke
to former Police Chief Steve Talbott but to no avail.
In one report she was told because Budget Towing isn’t located in O’Fallon that there was nothing the O’Fallon Police
department could do about it. So what does Steve Talbott do a few months later. He put his arms around Rodney
Sherman and gives Budget towing a glowing recommendation to the former Board of Alderman. Sorry folks that just doesn’
t pass the Watchdog sniff test. No wonder Rodney felt comfortable with overcharging cars towed from O’Fallon to Budget’s
lot.
Of further interest Council members Jeff Schwentker and Bill Hennessy. Along with former council member Peter Cantwell
have all been big supporters of bringing Budget towing and Steve Talbott back to O’Fallon. Do you think they are doing
this because they are looking after your best interest?