According to an April 2017 federal indictment, Hybertson did not file tax returns for himself or the business he owned, Black Hills Rig Heaters, a South Dakota-based trust that operated in Colorado.
Federal prosecutors stated Friday that Hybertson received gross incomes of $241,000 in 2010, $566,000 in 2011, $887,000 in 2012, and $117,000 in 2013.
In his plea agreement, Hybertson admitted to willfully failing to file tax returns those years.
Hybertson also pleaded guilty to concealing facts regarding his disability payments. Hybertson began receiving those payments in May of 2001 after declaring his inability to work due to a medical condition and applying for those benefits. Hybertson did not reveal to authorities his self employment with Black Hills Rig Heaters, nor his later employment with Therm Dynamics, a Commerce City business.
Hybertson continued receiving disability payments to which he was not entitled through February 2017.
Additionally, Hybertson threatened criminal prosecution of IRS officials who attempted to collect the taxes.
“The defendant avoided paying hundreds of thousands of dollars in taxes and at the same time lied to get money he did not deserve from Social Security Disability Insurance,” said U.S. Attorney Jason Dunn.
Friday, U.S. District Court Judge R. Brook Jackson allowed Hybertson to avoid future prison time. Hybertson was sentenced to the amount of time behind bars — about 20 months — that he had already served. But the judge demanded Hybertson undergo three years of supervised release while working to pay $146,484 to the Social Security Administration.
“This individual deliberately concealed his work from Social Security for personal gain for over a decade,” said Adam Lowder, Acting Special Agent-in-Charge of the SSA Office of the Inspector General’s Denver Field Division.
Hybertson must also file income tax returns for the all the years he missed and pay the all taxes owed. The tax loss for the years 2010-13 listed above was estimated at $828,000.
The Internal Revenue Service’s Criminal Investigation team joined in the investigation. The case was prosecuted by the District of Colorado office of the U.S. Department of Justice located in Denver.