Eston Melton Faces Felony Charges Over Unpaid Taxes and Asset Transfers

A prominent Miami lobbyist, Eston “Dusty” Melton III, has been charged with federal tax evasion for failing to pay over $1.3 million in taxes, highlighting the IRS’s increased enforcement efforts.

Key Focus: Tax Evasion and Asset Protection

1. Charge: Felony tax evasion.
2. Unpaid Taxes: Over $1.3 million.
3. Allegations: Intentional avoidance of tax obligations and asset transfers.
4. Potential Sentence: Minimum of two years in prison.

IRS Charges Miami Lobbyist with Tax Evasion

Melton’s high-profile status and political connections did not shield him from IRS scrutiny.

Details of the Case

1. Defendant: Eston “Dusty” Melton III, lobbyist.
2. Time Period: 2005 to 2014.
3. Business: Global Projects, Inc.
4. Allegation: Intentionally avoided paying tax obligations.
5. Court Action: Charged in West Palm Beach federal court.
6. Plea Change: Plans to change plea to guilty.

A Decade of Unpaid Taxes and Financial Missteps

Melton prioritized personal expenses over tax obligations.

Financial Details

1. Income Use: Alimony, child support, college tuition, legal fees.
2. IRS Liens: Issued after years of non-payment.
3. Payments Made: Only $62,100 paid toward $1.3 million tax bill.

Bankruptcy and Asset Transfers Raise Red Flags

Melton’s actions to protect his assets drew further scrutiny.

Asset Protection Measures

1. Bankruptcy Filing: Filed for Chapter 11 bankruptcy in 2017.
2. Home Sale: Sold Coconut Grove home for $1.358 million in 2018.
3. Debt Settlement: Used proceeds to settle personal debts, paying only $553,093 toward taxes.
4. Remaining Debt: Still owes the IRS $626,000.

Prosecutors: Melton Shifted Assets to His Wife

Federal prosecutors allege intentional tax evasion tactics.

Allegations

1. Asset Transfers: Transferred income and assets to his wife, Mabelys Melton.
2. Fund Transfers: Withdrew business funds and deposited them into his wife’s account.
3. Salary Reduction: Reduced his salary while continuing to provide full lobbying services.
4. Client Payment Diversion: Directed client payments to Gryphon Partners, Inc., owned by his wife.

Suspicious Real Estate Deal in West Palm Beach

A real estate purchase under his wife’s name raised further suspicions.

Real Estate Transaction

1. Purchase Location: West Palm Beach home.
2. Buyer: Mabelys Melton.
3. Down Payment Source: Funds tied to Global Projects and Gryphon Partners.
4. Melton’s Explanation: Shifted funds to help his wife qualify for the purchase.
5. Prosecutors’ View: Seen as another attempt to shield assets.

Potential Sentencing and Legal Consequences

Melton faces significant legal repercussions.

Possible Penalties

1. Prison Sentence: Minimum of two years in federal prison.
2. Financial Penalties: Significant fines.
3. Civil Tax Liabilities: Additional financial obligations.
4. Prosecutors’ Argument: Knowingly engaged in fraudulent asset transfers.

Final Thoughts: Tax Compliance Is Crucial

1. IRS Enforcement: Even well-connected individuals are not immune.
2. Compliance Reminder: High earners and business owners must ensure tax compliance.
3. Cautionary Tale: Melton’s case highlights the risks of evading tax responsibilities.
4. Increased Scrutiny: The IRS is increasing tax enforcement efforts.

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