The prosecution alleges Peake failed to file individual income tax returns from 2000 to 2007, Maryland’s Gazette.net reports. Peake has also been charged with obstructing the IRS, preparing false tax returns and tax evasion.
Authorities say Peake funneled more than $5.8 million worth of services fees from his business account to his personal savings, the news source reports. Peake ran Peake Management Group, the formal business entity that oversaw his athletic management business.
McCormick, an accountant with the U.S. Department of Commerce, is accused of assisting Peake with his transgressions. He is also accused of wire and bank fraud involving mortgages on some of Peake’s properties, Gazette.net reports.
Prosecutors believe the men provided false information to their mortgage lenders in order to secure $3 million in loans.