Contact

Click here for a confidential contact or call:

1-212-350-2774

Employment Tax Fraud

This archive displays posts tagged as relevant to employment tax fraud. You may also be interested in the following pages:

Page 1 of 4

October 9, 2020

Steve Choi, who owned and operated companies that provided food services in federal government buildings in the D.C. area, was sentenced to nearly two years in prison and ordered to pay over $11 million in restitution following his guilty plea on tax charges.  The government alleged that Choi failed to pay over $10 million in employment and sales taxes, despite withholding more than $4.4 million in employment taxes from employee checks and charging sales taxes to customers.  DOJ

March 11, 2020

The owner and operator of multiple parcel delivery businesses in Florida has been sentenced to 2 years in prison and ordered to pay $9 million in restitution for withholding over $10.8 million in payroll taxes.  Despite his business earning over $100 million in revenue, and despite withholding taxes from hundreds of employees, Ricardo Betancourt failed to actually pay it to the IRS and instead used those funds to finance personal expenses and other business ventures.  DOJ

Top Ten Tax Enforcement Actions of 2019

Posted  01/17/20
Hundred Dollar Bills with American Flag, and 1040 Tax Form
Tax fraud and tax evasion persist each year in various forms and whistleblowers have been at the forefront in combatting entities and individuals cheating the system. Under the IRS Whistleblower Reward Program, whistleblowers who bring information regarding tax fraud to light that results in a recover of over $2 million can be eligible for a reward between 15 to 30% of the government’s recovery. The IRS...

September 20, 2019

Pradyumna Kumar Samal, the former CEO of two Bellevue, Washington IT firms, has been sentenced to more than seven years in prison for his role in a long-running H1-B visa fraud scheme.  Samal's companies, Divensi and Azimetry, were employment agencies in the business of providing IT workers to major corporate clients.  Samal would submit fraudulent applications on behalf of foreign workers, claiming that they were being brought to the U.S. to perform a specific job, and instructing them to lie in their own applications, when, in fact, after being admitted, the employees would be benched and unpaid until Samal's companies were able to place them at actual client jobs.  In addition, Samal's companies failed to pay employment taxes on behalf of the foreign workers, instead diverting those funds to his personal use.  USAO WD WA

August 12, 2019

The CEO of a Colorado-based technology company has been sentenced to over 6 years in prison for defrauding the IRS, impeding the administration of tax laws, and stealing money from his employees’ healthcare and 401(K) plans.  As the head of Touchbase USA (TBUSA) and its successor company Touchbase Global Services, Inc. (TBGSI), Riordan Maynard allegedly stole over $50,000 from his employees’ healthcare plan and $68,000 from their 401(K) plans for use on company expenses.  He also caused TBUSA to be closed and TBGSI to be opened in order to avoid paying more than $2.5 million in unpaid payroll taxes.  After running up another $2.5 million in unpaid payroll taxes, Maynard also conspired to work around IRS levies sent to his customers.  USAO CO

July 19, 2019

Lawrence Robert Gazdick Jr., owner of a Virginia equipment rental business operating under the names National Technology Rentals, NTL Technology Leasing Services, and AV Rental Solutions, pleaded guilty to employment tax fraud, withholding payroll taxes from employee paychecks but failing to file payroll tax returns or pay the IRS.  In total, Gazdick caused a loss to the IRS of approximately $5.35 millionDOJ

February 14, 2019

Adam Van Pelt of Houston, Texas, who owned Stat Source, Inc., has been sentenced to nearly three years in prison and ordered to pay restitution of $20 million for failing to pay over more than $20 million in employment taxes to the IRS over the course of 18 quarters between 2011 and 2015.  USAO SD TX

November 21, 2018

Wagdy Guirguis of Honolulu, the owner of several engineering businesses, and Michael Higa, a CPA and the controller for those businesses, were convicted on multiple counts arising from a tax evasion scheme that diverted funds from Guirguis's business entities.  The entities failed to pay the IRS withheld employment taxes, failed to report all income received, and failed to file required returns.  Guirguis was also found to have impeded the IRS investigation and made false statements to revenue officers.  DOJ

November 16, 2018

The owner of Virginia-based Family Discount Pharmacy, Jerry R. Harper, Jr., was sentenced to 41 months in prison for failing to account for and pay more than $5 million in employment tax liabilities, despite withholding such taxes from employee wages.  Between 1998 and 2014, Harper filed only one quarterly employment tax return for the pharmacy.  DOJ

July 12, 2018

A Collinsville, Virginia pharmacist pleaded guilty to failing to account for and pay over employment taxes, announced the Justice Department’s Tax Division. According to court documents, Jerry R. Harper, Jr., 61, owned and operated Family Discount Pharmacy, Inc. (FDP) in Stanleytown, Virginia, with multiple locations in Stuart, Rocky Mount, Chatham, and Brosville, Virginia. As owner of FDP, Harper was responsible for collecting and paying over FDP’s employment taxes. From 1998 through 2014, FDP accrued employment tax liabilities of more than $5 million. Harper withheld these taxes from FDP employees’ wages, but did not pay the taxes to the Internal Revenue Service (IRS). In over 15 years, Harper only filed one employment tax return with the IRS. DOJ
1 2 3 4

Newsletter

Subscribe to receive email updates from the Constantine Cannon blogs

Sign up for: