Easton Business Owner Pleads Guilty in Massive Jet Ski and Dirt Bike Tax Fraud Scheme
Maryland Attorney General Anthony Brown says that 56 year old Robert Michael of Easton, the owner and operator of B&E Motorsports in Easton pleaded guilty in the Circuit Court of Anne Arundel County to a felony theft scheme over $100,000, felony identity fraud scheme over $25,000, perjury and willfully filing a false income tax return.
Brown says that the felony theft scheme was falsified sales paperwork to underreport the prices of jet skis, dirt bikes and trailers – cheating the State of Maryland out of tens of thousands of dollars in excise taxes – between July of 2018 and June of 2025.
Sentencing is set for October 27 – the parties have agreed to a binding sentence – Michael will serve 18 months in the Anne Arundel County Detention Center followed by five years of supervised probation. Michael will pay $81,081.42 in restitution to DNR, $52,448.36 in restitution to MDOT/MVA and $37,920,29 in restitution to the Maryland Comptroller and a fine of $25,000. If he violates probation, Michael could potentially serve 8 ½ additional years in prison.
Additional information from AG Brown:
“Every dollar stolen through tax fraud is a dollar that should have gone toward roads, schools, services and protecting the environment and Maryland’s natural resources,” said Attorney General Brown. “My Office will continue to protect the integrity of our State’s systems and hold wrongdoers accountable.”
The charges stem from a fraud scheme Michael carried out between July 2018 and June 2025, in which he created false paperwork to fraudulently deflate the cost of personal watercrafts (commonly known as jet skis), off-road motorcycles (commonly known as dirt bikes), and trailers to reduce the amount of excise tax he paid to the State of Maryland. Michael collected the correct tax from consumers at the time of sale but then created a second set of false documents to submit to DNR and MDOT, showing a fake lower price. Michael would remit only the tax due on the fake lower price and would steal the difference.
In November 2023, a DNR employee at the Customer Service Center that processes vessel registration filings noticed discrepancies in the filings. Unless they are being taken out-of-state and supporting documents are submitted verifying such, vessels in Maryland are required by Maryland law to be registered with DNR and a 5% excise tax is assessed on the purchase price. That form, a copy of the vessel title, and the collected 5% excise tax is required to be submitted to DNR. The employee noted a pattern of substantial undervaluing of the vessels by B&E Motorsports on their forms. The matter was referred to the DNR auditing division, who brought in NRP, and ultimately the Attorney General’s Criminal Division.
In total, the investigation into this jet ski scheme revealed at least 165 instances of Michael falsifying various DNR forms and vessel titles, including forgery of customers’ signatures, resulting in a total theft from the State of $81,081.42.
“Boat excise taxes help support waterway improvements, marina upgrades, and public water access infrastructure. By defrauding the state in this way, these individuals deprived the boating public of funding for upgrades that benefit all Maryland waterway users,” said Maryland Department of Natural Resources Sec. Josh Kurtz. “Natural Resources Police investigators will continue to work with our partners throughout state government to ensure those who defraud our state and harm our natural resources are held accountable.”
“Today marks the culmination of an extensive, coordinated effort between the Natural Resources Police and the Attorney General’s Environmental and Natural Resources Crime Unit,” said Col. Orlando Lilly, NRP Superintendent. “Our investigators worked tirelessly alongside numerous partners to uncover a pattern of felony theft that spanned nearly a decade. This dishonesty hurts customers, taxpayers, and the ethical businesses that Marylanders rely on.”
The investigation then expanded to examine his motor vehicle registrations. B&E Motorsports sells off-road motorcycles and trailers, both of which are required to be registered with the MDOT’s Motor Vehicle Administration (MVA). In total, the investigation into this dirt bike and trailer scheme revealed at least 95 instances of Michael falsifying various MVA forms under penalty of perjury and vehicles titles, resulting in a total theft from the State of $78,545.49.
“Falsifying MVA forms is not a victimless crime; it is a theft from the people of Maryland, who depend on everyone paying their fair share,” said Maryland Department of Transportation Secretary Katie Thomson. “MDOT is grateful to Attorney General Brown, his team and the Motor Vehicle Administration for uncovering the tax fraud scheme.”
“Committing fraud is a choice that comes with significant consequences for businesses and for the residents of Maryland,” said Chrissy Nizer, Motor Vehicle Administrator. “I applaud our MVA investigators and business licensing team for their role in detecting and stopping fraud, and their work with our state partners that brought closure in this case.”
Finally, the investigation reviewed bills of sales and invoices that demonstrated merchandise transactions that would be subject to Maryland Sales Tax. The investigation into records and filings showed falsifications and underpayment of collected sales tax. Additionally, a review of personal income tax filings by Michael during the period showed gross underreporting of income that limited or nullified any state income tax owed. In total, the investigation into this tax scheme revealed a pattern of substantial underreported collected sales tax during that same period, resulting in total theft from the State of over $35,000.
“Tax fraud undermines the fairness and integrity of our tax system, and those who break the law must be held accountable,” said Comptroller Brooke E. Lierman. “I want to thank the Office of the Attorney General and our partner state agencies for their work on this investigation and prosecution. Cases like this one are good government in action, and the Office of the Comptroller will always fight to protect Marylanders and uphold the law.”
Attorney General Brown thanked his Criminal Division, specifically Criminal Division Chief Katie Dorian, Environmental and Natural Resources Crimes Unit Chief D’Arcy Talley, Chief Investigator Thomas Waugh, Fraud and Corruption Unit Chief Alexander Huggins, and Assistant Attorneys General Kory Lemmert and Warren Davis, who are prosecuting this case. Attorney General Brown also thanked the Maryland Natural Resources Police (NRP), the Maryland Department of Natural Resources (DNR), the Maryland Department of Transportation’s (MDOT) Motor Vehicle Administration (MVA), and the Maryland Office of the Comptroller for their cooperation in this joint investigation. Finally, Attorney General Brown thanked State’s Attorney for Anne Arundel County Anne Colt Leitess for her assistance.