Federal Employment Tax Fraud Investigations
Oberheiden PC is a team of ERISA defense attorneys, DOL compliance advisors and former federal prosecutors.
Our experienced ERISA attorneys have helped corporate and individual employers in DOL investigations across the United States. From our significant case load and the insights of our lawyers that have previously served at the U.S. Department of Justice, we offer our clients experienced and competent advice and diligently work to protect and defend our clients’ businesses, reputation and freedom.
Dr. Nick Oberheiden is an experienced ERISA defense attorney who represents clients in all stages of an investigation with the goal and track record of avoiding criminal charges or excessive civil liability judgments. If you are interested in a free consultation with Dr. Oberheiden, you can reach him seven days a week. Your case is important to him and you will not be delegated to junior lawyers or paralegals. Call today and get important insights into the investigative process and a free case analysis.
Examples of Federal Payroll Tax Fraud and Federal Unemployment Insurance Fraud Cases
- Two men in Florida were sentenced to spend two years in federal prison for their respective roles in a scheme to avoid paying mandatory federal payroll taxes. The two men, who are Honduran nationals, operated a construction company through which they employed individuals who were not authorized to work in the United States. The two men were able to employ these undocumented workers by paying them through shell companies. By paying the workers through shell companies, the two men were able to hide the fact that the workers were employed by them, thus avoiding the payment of federal payroll taxes. The two men, in addition to their prison sentences, will have to pay over $6 million to the IRS in restitution.
- An Illinois man who was president of a concrete company was sentenced to spend 3 months in prison for his role in a scheme to avoid paying federal payroll taxes. The Illinois man would under-report the number of hours his employees worked on monthly time sheets. This under-reporting would lower the concrete company’s payroll tax liability. To perpetuate his scheme, the man would pay his employees under the table to make sure they were fully compensated for their work, but these payments were not reported to the IRS. In addition to his prison sentence, the man was ordered to pay over $600,000 in restitution to the IRS.
- A man from Ohio, who was a former Job Corps Center Director, was sentenced to spend 37 months in a federal prison for his role in a scheme to not pay federal payroll taxes. The man oversaw the Cleveland Job Corps Center and during his tenure the Department of Labor paid $15 million to the Cleveland Center in order to pay staff and workers. The former director took almost $1.5 million from the Department of Labor’s payments and converted that money to his own use. The $1.5 million was supposed to be withheld from employee’s checks in order to pay payroll taxes. In addition to his prison sentence, the man will have to pay back the $1.5 million as restitution to the IRS.
- A woman from New York was sentenced for her role in a money laundering scheme that involved the illegal non-payment of federal payroll taxes. The woman ran an electric company where she would falsify invoices from vendors and demand payments to her company be in cash. The woman would then pay her employees partially in cash, thus underreporting how much payroll expense her company had. The woman avoided paying substantial payroll taxes since she did not correctly report her payroll expense. As a result of the scheme, the woman will have to pay back $1.8 million she kept and converted to her own use.
- A landscaping executive from Rhode Island pleaded guilty to his role in a scheme involving federal payroll taxes. According to the plea agreement, the man would send reports to the State of Rhode Island that underreported the number of hours his employees worked and the amount of money his employees received on federally funded projects. The man underreported the number of hours his employees worked to lessen his payroll tax liability. As a result of the scheme, the man did not pay $170,000 he owed in payroll taxes.
- A California man was sentenced to spend nine years in prison for his role in an unemployment insurance fraud scheme. The man stole personal identifying information from hundreds of individuals and then used that information to submit false unemployment claims to the California Employment Development Department (CEDD). CEDD approved the false claims and unknowingly paid them, which proceeds were converted by the man for his own use. In addition to his prison sentence, the man will pay $350,000 in restitution to the CEDD.
- A man from Illinois will serve sixty months in prison for his role in defrauding the Connecticut state employment department and his attempt to defraud 37 other states’ employment departments. The man used stolen personal information from identity theft victims to file fraudulent unemployment claims with the Connecticut Department of Labor. The man had the unemployment benefits paid out on various debit cards which he would then convert for his own use. The man attempted the same scheme in 37 other states but was caught before any other benefits were paid. In addition to his prison sentence, the man will pay $65,000 in restitution to the state of Connecticut.
- A Florida man was convicted by jury for his role in an unemployment fraud scheme. According to evidence presented at trial, the man along with his co-conspirators stole personal information from individuals they worked with and then used that information to file false unemployment claims via Florida’s electronic filing system. Once the claims were approved, then man directed the proceeds to his personal bank account. As a result of his conviction, the man will spend thirty months in prison and will have to pay $20,000 in restitution.
- A man residing in Michigan was sentenced to spend thirty-six months in prison for his participation in a scheme where he falsified unemployment insurance claims. The man stole personal information from unknowing individuals and then used that information to file false unemployment insurance claims. In order to use the money paid out by the claims, then man would impersonate the individuals (from whom he stole the personal information) at ATMs in order to withdraw money. In addition to his prison sentence, the man will also have to pay $330,000 in restitution.
- A Las Vegas woman was convicted for her role in an unemployment benefit scheme. To facilitate her scheme, the woman created fake business and registered these fake businesses with the Nevada Secretary of State. She then used stolen personal information from numerous individuals to create fake employee profiles for these businesses. After a specific amount of time, the woman dissolved the fake businesses and used the stolen personal information that she used for her “employees” to file unemployment insurance claims. Once the claims were approved and paid, the woman used the money for her own use. As a result of her conviction, the woman was sentenced to twenty-six months in prison and ordered to pay $182,000 in restitution.
Call Oberheiden PC Today to Work with Proven ERISA Defense Attorneys
The federal defense and ERISA attorneys at Oberheiden PC are available to discuss your concerns and the status of your case with you in a free and confidential consultation. From the moment you contact us, you will see that we make our clients’ cases our own concern and priority. You will be represented by partner attorneys, former DOJ officials, and knowledgeable and dedicated attorneys, not by junior lawyers or paralegals. Call attorney Dr. Nick Oberheiden at (214) 692-2171 or request an appointment online today and get a case assessment for free. Nick has handled a variety of ERISA matters, from compliance advice to trial.