A Frederick County man has been sentenced to 18-months in prison for underreporting on his federal tax returns. In US District Court in Baltimore on Friday, Shan Peter Stanley, 47, of Knoxville, was also told to pay restitution totaling $373,820.

The US Attorney's Office for Maryland says Stanley owned and operated Advanced Paving in Knoxville. Between 2004 and 2006, authorities say Stanley and his wife withdrew large sums of money from his business accounts to pay for personal items, such as mortgage payments on his residence and Florida vacation home, car payments on a 2008 Corvette, a custom built boat, remodeling expenses and vacations to Florida, Myrtle Beach, South Carolina, and other locations.

In his plea agreement, Stanley admitted that he provided a business ledger to his accountant, which underreported his company's gross receipts. The accountant was not given any bank statements and was told by Stanley that the information in the ledger was accurate. So the accountant relied on those figures to derive the company's gross income and expenses. As a result, federal officials say Stanley underreported his business' gross receipts on his tax returns from 2004-2006 by $1,079,873. The total amount of taxes owed as a result of this underreporting was $373,820, according to the US Attorney's Office for Maryland.

"Taxpayers thinking about participating in fraudulent tax schemes, including failing to report all forms of income, should stop in their tracks and look at the consequences of taking the next step," says Eric Hylton, Acting IRS Special Agent in Charge, in a statement. "Those consequences include going to prison, being branded a convicted felon, and paying back all the taxes owed plus steep penalties and interest."