Easton Motorsports Dealer Pleads Guilty in Tax Fraud Scheme
Easton, MD - An Easton business owner has pleaded guilty to cheating the State of Maryland out of tax money for nearly seven years. The Maryland Attorney General's Office announced the plea on Tuesday.
Robert David Michael, 56, of Easton, Maryland owns and runs B&E Motorsports, LLC in Talbot County. The business sells jet skis, dirt bikes, and trailers.
From July 2018 to June 2025, Michael charged customers the correct tax when they bought a jet ski, dirt bike, or trailer. He then made a second set of papers showing a lower, fake price.
Those fake papers went to the Maryland Department of Natural Resources (DNR) and the Motor Vehicle Administration (MVA). Michael paid the state tax only on the lower price and kept the difference.
Most boats and jet skis in Maryland must be registered with DNR. A 5% excise tax is charged on the purchase price.
In November 2023, a DNR worker who handles vessel registrations noticed something was off. Forms from B&E Motorsports kept listing prices that were much too low.
The worker sent the concern to DNR's auditing division. From there, the case moved to the Natural Resources Police (NRP) and then to the Attorney General's Criminal Division.
Investigators found at least 165 times Michael falsified DNR forms and vessel titles. Some of those included forging customers' signatures. The jet ski part of the scheme cost the state $81,081.42.
The investigation then turned to dirt bikes and trailers, which must be registered with the MVA. Investigators found at least 95 more false forms and titles, adding up to $78,545.49 taken from the state.
Investigators also reviewed the business's sales records and Michael's personal income tax returns. They found he underpaid sales tax he had collected and greatly underreported his income. That part of the scheme cost the state more than $35,000.
On September 22, 2026, Michael pleaded guilty in Anne Arundel County Circuit Court. The charges were felony theft scheme over $100,000, felony identity fraud scheme over $25,000, perjury, and willfully filing a false income tax return.
"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."
Sentencing is set for October 27, 2026. Under a binding agreement, Michael will serve 18 months in the Anne Arundel County Detention Center, followed by five years of supervised probation.
He has agreed to pay $81,081.42 to DNR, $52,448.36 to the MVA, and $37,920.29 to the Maryland Comptroller. He will also pay a $25,000 fine.
If Michael violates his probation, he could serve eight and a half more years in jail.
"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.
"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.
The case was a joint effort by the Attorney General's Office, NRP, DNR, the MVA, and the Maryland Office of the Comptroller.
