A Miami businessman has been indicted on charges of evading taxes on millions of dollars earned from a company that sold internet access to American servicemembers and contractors stationed abroad, according to the Justice Department.

Allegations in indictment

A federal grand jury returned the indictment Wednesday, charging Joseph Stewart with tax evasion and filing false tax returns.

Prosecutors allege that from 2013 to 2021, Stewart received more than $6.8 million in dividends from his 50% ownership in the business but stopped filing timely returns once the company became profitable.

The indictment further alleges that, after receiving IRS letters in 2019, Stewart hired a tax attorney and return preparers but falsely told them that more than $3.8 million in dividends from 2013 to 2018 were nontaxable loans.

Prosecutors said Stewart also falsely claimed he did not know the other shareholders of the business, leading tax professionals to draft returns that underreported his income.

False affidavit allegation

The indictment also alleges that in April 2016, Stewart filed a false affidavit with U.S. Citizenship and Immigration Services, affirming he had filed federal returns for the previous three years.

Prosecutors say he attached unfiled copies of returns and falsely attested they had been submitted to the IRS.

Possible penalties

If convicted, Stewart faces up to five years in prison for each tax evasion count and up to three years for each count of subscribing to a false return, according to prosecutors.

He also faces possible supervised release, restitution and monetary penalties.

A federal district judge will determine sentencing after considering the U.S. Sentencing Guidelines and other statutory factors, the department said.