CHARLOTTE, N.C. (QUEEN CITY NEWS) – An Iredell County dentist was indicted Friday for four years of tax evasion and a loan scheme that defrauded a federal agency of more than $3 million.
According to the U.S. Attorney’s Office, from August 2018 to November 2021, 58-year-old Matthew Johnson submitted a false and fraudulent loan application in the name of his dental practice and the real estate development business. The surgeon owned Johnson Oral Surgery in Mooresville and Mount Mourne Springs LLC, a real estate development company.
The oral surgery office is located with the Mount Mourne Springs complex near U.S. 21 and Medical Park Road.
The indictment was unsealed Friday following Johnson’s initial appearance in court. Documents allege that the application was for a loan backed by the Small Business Administration, and allegedly contained fraudulent information, including the status of Johnson’s personal and business taxes and outstanding tax debts.
The indictment alleges that one of the fraudulent documents Johnson allegedly submitted was a fabricated letter purporting to be from the IRS, falsely representing that Johnson was on a payment plan with the IRS.
As a result of the fraudulent application, Johnson received more than $3 million in an SBA-backed loan. Contrary to claims Johnson made, he allegedly used the funds to pay for personal expenses including travel, cash withdrawals, and to pay for farm equipment and home improvement projects.
In addition to the loan scheme, the indictment alleges that, from October 2015 to November 2021, Johnson committed tax evasion. It claims he failed to pay more than $615,000 in taxes for tax years 2013, 2014, 2015 and 2016. Johnson has been released on bond.
He is charged with wire fraud, which carries a maximum penalty of 20 years in prison, and tax evasion, which has a maximum statutory penalty of up to five years in prison. Both charges also carry a fine of up to $250,000 for each offense.
