Auto warranty firm owner receives prison sentence for tax evasion

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ST. LOUIS — United States District Judge Stephen R. Clark sentenced Gary D. Primm Jr. to 36 months in prison Wednesday. After a federal jury trial in October 2021, Primm was found guilty of two counts of tax evasion and one count of failure to file an income tax return.

Primm owned and operated United Auto Defense, LLC, (“United”) located in St. Charles, which was a call center that marketed and sold auto warranties. In the tax year 2014, United had taxable income in excess of $620,000, but Primm failed to file an income tax return for the company. In the tax years 2014 and 2015, Primm received over $1 million dollars in income from United operations, but he did not pay any personal income taxes on that income.

Primm took steps to evade assessment of his taxes by diverting United funds to a nominee bank account instead of his personal bank account and by filing false forms with the IRS. Primm used funds from the nominee bank account to pay personal expenses, including his mortgage payments, jewelry purchases, automobile purchases, and gambling expenses.

“Mr. Primm’s deliberate attempt to evade paying taxes on his income was a violation of an obligation we all have to pay our fair share of taxes,” said IRS-Criminal Investigation Special Agent in Charge Tyler Hatcher, St. Louis Field Office. “IRS-CI is committed to enforcing the nation’s tax laws so the system is fair for all taxpayers. This sentence shows there are consequences for criminals who attempt to cheat the system.”

The Internal Revenue Service Criminal Investigation investigated this case. Assistant United States Attorneys Kyle T. Bateman and John Ware handled the matter for the United States Attorney’s Office.

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