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Employment Tax Fraud

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

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August 19, 2016

A Germantown, Tennessee, resident and business owner was sentenced to one year in prison and ordered to pay more than $10 million in restitution for failing to pay over employment taxes to the Internal Revenue Service (IRS), announced the Justice Department’s Tax Division and U.S. Attorney Edward L. Stanton III of the Western District of Tennessee. According to court documents, Larry Thornton, 67, was the majority owner, president and chief executive officer (CEO) of Software Earnings, Inc. (SEI), a Memphis company that produced and installed check processing. Thornton was also the 100 percent owner, CEO and president of First Touch Payment Solutions, LLC (First Touch), a Memphis company that provided merchant services for credit card processing. Thornton, as CEO and president of SEI and First Touch, had ultimate and final decision-making authority regarding SEI’s and First Touch’s business activities and had authority to exercise significant control over SEI’s financial affairs. Thornton admitted that he was responsible for collecting, accounting for, and paying over to the IRS federal income taxes and Federal Insurance Contributions Act (FICA) taxes that were withheld from the wages of SEI and First Touch’s employees. DOJ

October 16, 2015

Jonathan Leland Moore, former chief financial officer of Arrow Trucking Company, was sentenced to serve 35 months in prison for conspiring with James Douglas Pielsticker, former CEO and president of Arrow, to defraud the US by failing to account for and pay federal withholding taxes on behalf of Arrow and by making payments to Pielsticker outside the payroll system.  DOJ

July 8, 2015

Maria Elizabeth Townsend, president of Washington-based Townsend Controls Inc., was sentenced to serve more than three years in prison and pay $3,327,124.49 in restitution following her February 2015 conviction of 10 counts of failing to pay federal employment taxes. DOJ

December 23, 2014

US Congressman Michael Grimm pleaded guilty to aiding and assisting the preparation of a false tax return by fraudulently underreporting $900,000 in restaurant gross receipts and lowering payroll taxes through ‘off-the-book’ payments in connection with the Manhattan restaurant he owned called Healthalicious. DOJ

January 20, 2016

A federal court in Rock Hill, South Carolina, ordered T-N-T of York County Inc. and TM Trucking of the Carolinas LLC, to stop violating their employment tax reporting, deposit and payment obligations. The government’s complaint alleged that T-N-T of York County and TM Trucking of the Carolinas together owed more than $2.7 million in federal employment and unemployment taxes for various periods from 2009 through 2014. DOJ

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